Entrepreneurs and Small businesses - All of KB's offers - Business loans for project financing with support from the EU SF - Ponte Programme II

Business loans for project financing with support from the EU SF - Ponte Programme II

Loans are intended for:

client who is an entrepreneur (legal entity or natural person) and who

is authorised to carry out business in the Czech Republic and in fact he carries out business there
has a tax duty in the Czech Republic
can be a credit recipient according to relevant legislation

municipalities, confederations of municipalities, regions, allowance organisations established by municipality or region, and legal entities established by municipality or region

Loans in foreign currencies are primarily intended for clients with the sufficient foreign currency collection requirements in their account at Komerční banka, a. s.

Loan promise:

A prerequisite for the submission of applications for grants from theEU Structural funds is probably-secured financing for the relevant project, Komerční banka provides its clients with a promise for project financing.

Nature of the loans:

There are two types of loans for project financing from the EU Structural funds - the Loan for EU grant pre-financing and the Standard loan for project co-financing

Loan for EU grant pre-financing

The Loan for EU grant pre-financing will be provided as a short- to medium-term loan to bridge the time discrepancy between the immediate need of admissible project expenses and the ability to draw from the EU Structural funds grant. Types of loans:

Investment loans,
Loans for operating and investment requirements,
Municipal loans.

Loans for EU grants pre-financing will be provided in CZK; in justified cases the loan can be also provided in foreign currencies. This type of loan will largely have a fluctuating interest rate. The client pays the interest monthly or quarterly, according to the terms agreed in the loan contract. The principal is primarily re-paid from the grant drawn from the EU Structural funds.

Standard loan for project co-financing

The Standard loan for project co-financing will be provided as a medium- to long-term loan for financing project costs not covered by the grant from the EU Structural funds. Types of loans:

Investment loans,
Loans for operating and investment requirements,
Municipal loans,
Loans for assets acquisition.

Standard loans for project co-financing will be provided in CZK and any foreign currency (EUR, USD or CHF). This type of loan can have either a fixed or fluctuating interest rate. The client pays the interest monthly or quarterly, according to the terms agreed in the loan contract. The principal is re-paid according to a payment schedule contractually agreed upon between the client and KB.

Both loans can be drawn in a lump sum or in installments for direct payments to the supplier's or vendor's account on the basis of submitted documents. In justified cases, money can also exceptionally be paid to the client's current account.

Means of repayment:

Loan for pre-financing EU grants: The principal is primarily re-paid from the grant drawn from the EU Structural funds.
Standard loan for project co-financing: The principal is rpaid according to a payment schedule contractually agreed upon between the client and KB.

Loan fees are set forth in the KB Rate Schedule. Loans are secured using standard security instruments taking into account the type of project and the type of loan.

Loan benefits:

KB product's offer corresponds to the needs of the applicants for the grant from the EU Structural funds,
Time and the factual cohesion of KB and state institutions activities enables the submission of an identical set of documents to both subjects.

These loans allows you:

To solve the time discrepancy between the need for admissible project expenses and the ability to draw on the grants.
To finance project costs not covered by the grant from the EU Structural funds.

How can you obtain a loan for project financing with support from the EU Structural funds?

If you wish to learn more about this product or order it, please contact your Relationship manager or call the free KB Infoline 800 111 055.

As a rule, KB will require the same appendices to the Loan Application as those that the client is required to submit with the application for a grant. This primarily involves the following appendices:

current business authorization documents,
a contract of association in the case of an association of subjects or municipalities,
a financial statement including a tax return and an auditor's report (if the client has such a report at its disposal), for the previous two accounting periods,
a current balance sheet and profit-and-loss statement including any supplementary information (only for clients using double-entry accounting),
a copy of the tax return, including appendices according to Act No. 337/1992 Coll. including supplementary information (for clients using single-entry accounting), the copy of the tax return must include the form-corroborating receipt of the original by the relevant revenue authority),
forecast financial statements corroborating the repayment of the loan,
a declaration on asset and liability ownership – KB form,
the ownership structure, ownership shares – KB form,
documents for securing the loan, depending on the nature of the security instrument (for example, in the case of the right-of-lien to real estate, an excerpt from the title deed not older than 5 days, the accusation title, the insurance contract, etc. ),
a statutory declaration from the client to the effect that it has no debts past due owed to the relevant revenue authority, to the relevant social security administrator, to the relevant insurance company, to relevant municipalities, eventually to the relevant customs authority (if the client imports goods or services), the declaration must also include a provision that the client does not have a repayment schedule with any of the aforementioned subjects for the payment of debts that were past due. (The statutory declaration is part of the Loan Application form),
a project including the feasibility study, if this was required for discussion of the grant application,
a building permit,
the decision approving the project,
a contract for work,
the decision to award a grant.