• SME Guarantee Fund

    Shpërndaje në:

    The Albanian Guarantee Fund of 5 million Euro is a financial instrument created by the Government of Italy and Government of Albania under the Italian-Albanian Programme for the Development of Albanian SMEs, which enables the provision of guarantees in the form of collateral to stimulate crediting from financial institutions for micro, small and medium (SME) enterprises that face difficulties in accessing to bank loans due to insufficient guarantees.

    In practise, the Albanian Guarantee Fund substitutes those guarantees mainly required from micro, small and medium enterprises to obtain a loan, thus reducing the risk in the guaranteed amount.

    By means of this credit guarantee SMEs have the possibility to obtain cheaper loans compared to those in the market without any additional guarantee for the part covered by the Fund.

    Which are the beneficiaries?
    All entities: natural or legal persons, that own or represent micro, small and medium (SMEs) enterprises and that currently operate an entrepreneurial activity or that would like to start-up an activity in Albania, which belong to various sectors like agriculture, agro-industry, fishing and aquaculture, manufacturing and processing industry, information and communication technology, natural generation of energy, transport, tourism and services.

    Eligibility criteria
    Only micro, small and medium enterprises that meet the eligibility criteria and conditions set by the Credit Line of the Italian-Albanian Programme for the Development of Albanian SMEs are entitled to benefit from the Albanian Guarantee Fund.

    Specifically, SMEs must meet the following criteria to become eligible for support from the Albanian Guarantee Fund:

    • The company is registered in Albania;
    • Not less than 51% of the company's capital is under the ownership of an Albanian citizen;
    • The annual turnover is lower than 10 million Euro;
    • The number of employees is lower than 250.

    Conditions to grant the guarantee
    The Albanian Guarantee Fund can be used only to guarantee those loans financed under the Italian-Albanian Programme for the Development of Albanian SMEs through banks or non-bank financial institutions partners to the programme.

    Credit guarantees are granted for loans intended to finance SMEs investment projects which are related to the purchasing of machineries, equipment and services made in Italy.

    The Guarantee Fund will serve as a guarantee for banks and non-bank financial institutions, partners to the programme, to cover up to 50% of the potential risk in liquidating the loan on time for standard projects and up to 60% for SMEs priority projects.

    Shuma maksimale e garancisë për SME-të: 

    Loan type


    Minimum of loan  

    Maximum of loan

    Maximum amount of guarantee

    Percentage of loan guarantee


    Standard project

    € 50,001

    € 500,000

    € 200,000

    Up to 50%


    Priority project

    € 50,001

    € 500,000

    € 200,000

    Up to 60%


    Small project

    € 15,000

    € 50,000

    € 30,000

    Up to 60%

    The maximum interest rate applied is up to 3 % for loans in Euro and up to 4% for loans in ALL. Loan repayment conditions are from 3 - 8 years and the grace period, where only interest is paid, is from 1 to 2 years.

    Guarantee fee

    The benefiting economic entity will pay an initial fee of 1% per annum calculated on the annual amount of the guarantee set for each guaranteed loan.

    Procedure to grant the guarantee

    1. The economic entity submits a loan application to the bank or non-bank financial institution, which is a partner to the programme.

                    Participating financial institutions:

    1. The financial institution will evaluate the application and if the eligibility criteria are met, but there is a lack of collateral, it will send the application to be granted with a guarantee at the Albanian Guarantee Fund.
    2. The request will be reviewed in a short term. The Albanian Guarantee Fund can ask from the bank any additional information deemed necessary to conclude the approval. Upon approval, the entity receiving the loan shall pay the guarantee fee to the Albanian Guarantee Fund.
    3. The Albanian Guarantee Fund shall grant the credit guarantee for the bank or non-bank financial institution.
    4. The bank or non-bank financial institution shall endorse the loan agreement with the beneficiary.