Loans supported by PGRLF

The following natural or legal persons can take advantage of a preferential loan with PGRLF support:

• a micro-entrepreneur who employs fewer than 10 people and whose annual turnover or balance sheet total does not exceed EUR 2 million,
• a small entrepreneur who employs fewer than 50 people and whose annual turnover or balance sheet total does not exceed EUR 10 million,
• medium-sized entrepreneurs who employ fewer than 250 employees and whose annual turnover does not exceed EUR 50 million or whose annual balance sheet total does not exceed EUR 43 million,
• a large entrepreneur who employs more than 250 employees and whose annual turnover exceeds EUR 50 million or whose annual balance sheet total exceeds EUR 43 million,
• or an entrepreneur who has not been registered in the register of agricultural entrepreneurs for more than 24 months prior to submitting the application.

The interest subsidy provided by the Support and Guarantee Fund for Agriculture and Forestry consists of financing part of the interest on loans, up to a maximum of 5% p.a. (annual interest rate). At the same time, the recipient of the subsidy must pay at least 0.5% p.a. (client's interest burden). For start-up entrepreneurs who have not been registered for more than 24 months, the support is increased by 1% p.a.

The support is mainly focused on the implementation of long-term investment plans with regard to restructuring and increasing efficiency, modernization, reducing production costs, improving quality, and further development of agricultural entities.

• Support is not provided for overdraft and revolving loans or for the payment of liabilities arising from lease agreements.
• With loans supported by PGRLF, a. s., you can obtain financing of up to 100% of your investment.
• You do not pay any fees for using PGRLF support.
• A free advisory service provided by our specialists is available to you. 

Purpose of the investment loan:

• purchase of machinery, equipment, and technological units,
• construction, acquisition, or improvement of real estate.

The total amount of credit funds for a single applicant (for the period from October 1 to September 30 of the following year) may not exceed:

• CZK 15 million for investments in the purchase of equipment for primary agricultural production,
• CZK 75 million for investments in the construction, acquisition, or improvement of real estate in agricultural enterprises.

The recipient of the support may be:

• an agricultural entrepreneur who is a primary agricultural producer,
• an entrepreneur who is not in difficulty.

Purpose of the investment loan:

• purchase of non-state agricultural land by primary agricultural producers,
• purchase of additional land that forms a logical part of the purchased agricultural land.

Recipients of support:

• entrepreneurs who are primary agricultural producers,
• small and medium-sized entrepreneurs,
• entrepreneurs who meet the conditions for receiving support under the de minimis* regime pursuant to EU Commission Regulation No. 1408/2013, where the maximum amount of support is EUR 15,000.

* The exact definition of de minimis aid can be found on the website of the Ministry of Agriculture.

This loan is suitable for you if you invest primarily in equipment and technology for forest management or want to reduce costs, improve quality and productivity, develop production, or switch to more environmentally friendly management methods.

Purpose of the investment loan:

• purchase of forestry equipment

Maximum loan amount:

• CZK 20 million / EUR 300,000

Recipients of support:

a) Companies or micro, small, medium, or large entrepreneurs who:

• are engaged in forest management and other activities in the field of forestry, timber harvesting, or supporting activities for forestry,
• must have income from forest management of at least 25% of total income in the first accounting period following the period in which the application was submitted,
• must not have any outstanding payments to the Czech Financial Administration and the Fund on the date of submission of the application, and must meet the de minimis* conditions.

b) A natural or legal person who is the owner, lessee, or borrower of a forest who:

• manages the forest in accordance with an approved forest management plan or a valid forest management outline and is an entrepreneur, municipality, or voluntary association of municipalities.
• has no outstanding payments to the Czech Financial Administration and the Fund as of the date of application,
• meets the de minimis* conditions.

* The exact definition of de minimis aid can be found on the website of the Ministry of Agriculture. 

Purpose of the investment loan:

• purchase of equipment and technologies in specified production segments (e.g., drying of sawn timber, steaming and impregnation of solid wood, handling warehouse equipment, etc.)

Recipients of support:

a) Entrepreneurs who:

• meet the de minimis* conditions,
• have no outstanding payments to the Czech Financial Administration and the Fund as of the date of application,
• are engaged in:
  – sawmill production and wood impregnation,
  – production of wooden, cork, wicker, and straw products, except furniture,
  – production of veneers and wood-based panels,
  – production of other products of building joinery and carpentry,
  – production of other wooden, cork, wicker, and straw products, except furniture.

b) A municipality or voluntary association of municipalities or an entrepreneur who:

• meets the de minimis* support criteria,
• has no outstanding payments to the Czech Financial Administration and the Fund,
• is engaged in:
  – sawmill production and wood impregnation,
  – production of wood, cork, wicker, and straw products, except furniture,
  – production of veneers and wood-based panels,
  – the manufacture of other products of building joinery and carpentry,
  – the manufacture of other wooden, cork, wicker, and straw products except furniture, and is also a contributory organization of the municipality or a legal entity founded by the municipality.

*The exact definition of de minimis support can be found on the website of the Ministry of Agriculture.

Purpose of the investment loan:

• acquisition of investment assets related to the processing of agricultural products for food or feed purposes

Maximum loan amount and term:

• CZK 50 million for an unlimited period

Recipient of support:

• entrepreneurs engaged in the processing of agricultural products,
• who meet the de minimis* conditions,
• whose income from the processing of agricultural products must reach at least 25% of their total income in the first accounting period following the period in which the application for support was submitted. If the entrepreneur is engaged in the processing of agricultural products and at the same time in primary agricultural production and achieves income from agricultural production of at least 25% of total income, they must achieve the specified income for the duration and effectiveness of the support agreement,
• and must not have any outstanding payments to the Czech Financial Administration and the Fund on the date of submitting the application.

* The exact definition of de minimis support can be found on the website of the Ministry of Agriculture.

Purpose of the investment loan:

• processing agricultural products for food purposes or food production,
• marketing own products, i.e., investments in, for example, the purchase of technological equipment related to the processing of agricultural products for food purposes or food production (including costs related to their installation and setup)
• construction, reconstruction, and equipping of stores or vending machines. The purchase of land is an eligible cost only if it does not exceed 10% of the total eligible investment costs.

Maximum loan amount and term:

• CZK 20 million / EUR 300,000

Beneficiary:

• an entrepreneur engaged in food production (pursuant to Act No. 110/1997 Coll.) or who will meet this condition within 12 months of submitting the application,
• meets the conditions for the provision of support under the de minimis* regime.

* The exact definition of de minimis support can be found on the website of the Ministry of Agriculture.