Risk-Sharing Micro-Finance Facility
Advantages
Low interest rates, free of fees and commissions, and with reduced collateral requirements
Suitable for
Start-ups and social enterprises, persons from vulnerable groups or youths up to 29 years of age wishing to start their own businesses
Term
Up to 10 years for investment loans
Low-interest business loans without fees and commissions and with releived collateral requirements, intended for start-ups and social enterprises, entities of the social and solidarity economy, persons from vulnerable groups or young people up to 29 years old who wish to start their own business
The loans offered by Fibank are up to 25 000 EUR and are under extremely favorable conditions:
- Low interest rates: up to 1.9875%* + ¼ of €STR *
- No fees and commissions
- Relieved collateral requirements
- Long term of the investment loan - up to 10 years
- Long term of the working capital loan - up to 7 years
- Long grace period for investment loans: up to 2 years
- Long grace period for working capital loans: up to 3 months, for seasonal business up to 9 months
- Reduced requirement for self-participation - up to 10%
- No business plan requirement.
Financing can be granted as:
- investment loans;
- working capital loans.
Parameters:
Loan type | Investment | Working capital |
Amount | Up to 25 000 EUR | Up to 25 000 EUR |
Currency | EUR | EUR |
Term | Up to 10 years | Up to 7 years |
Interest rate | up to 1.9875%* + ¼ of €STR * | up to 1.9875%* + ¼ of €STR * |
Grace period for the principal | Up to 24 months | Up to 3 months, for seasonal business up to 9 month |
Application fee | No fee | No fee |
Approval fee | No fee | No fee |
Management commission | No commission | No commission |
Commitment commission | No commission | No commission |
Early repayment fee | No fee | No fee |
Renegotiation commission | No commission | No commission |
Collateral | Personal guarantees from the owners and/or a third party; Pledge of assets purchased with the micro loan | Personal guarantees from the owners and/or a third party |
Period for micro loans granting | By 31 December 2031 | By 31 December 2031 |
*"€STR" is a daily reference interest rate published by the European Central Bank (ECB) that reflects the weighted average interest rate on unsecured overnight cash transactions in euros between banks and other financial institutions in the euro area.
Start-up businesses | Natural persons or legal entities who have recently registered as carrying out economic activity, including self-employed persons (artisans; persons exercising free professions /freelancers/ and others), sole traders or recently established micro-enterprises* that meet the following criteria simultaneously:
• As of the date of application for funding, they have no more than 5 years from the date of registration; • They have not been listed on the stock exchange; • They are not the result of a merger, split and spin-off.. |
Start-ups of persons from vulnerable groups | Start-up businesses, including artisans, self-employed freelancers, sole traders and micro-enterprises*, where the entrepreneur or manager and owner of more than 50% of the capital of the enterprise falls into at least one of the following vulnerable groups:
• unemployed person for more than 6 months; • at the age of 29 inclusive; • a person with disabilities. |
Social enterprises | Start-up or existing enterprises (including micro-, small, medium-sized*** and large enterprises) which, regardless of their legal form, simultaneously meet the following conditions:
• In accordance with their articles of incorporation/statutes, have as their primary scope of business the achievement of a measurable, positive social impact, rather than the generation of profit, and which: - provide services or goods that generate social return, and/or - use a method of producing goods or services that embodies their social purpose;
• Use their profits primarily to achieve their primary purpose and have pre-determined procedures and rules in place regarding any distribution of profit that ensures that such distribution does not harm the primary purpose, and
• They are managed in an entrepreneurial, accountable and transparent manner, in particular by involving in the management workers, customers and interested parties affected by their economic activity.
A social enterprise can be both the entire organization and a separate structure, part of an existing enterprise, which at the time of application carries out social activity and acts as a social enterprise, but maintains separate accounting analytics. |
Subject of the social and solidarity economy | Enterprises according to Art. 5 of the Law on Social and Solidarity Economy Enterprises (LSSE), which are:
|
* Microenterprise: an enterprise employing fewer than 10 employees and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million