• Loan Supported by PGRLF, a.s.

    Enjoy benefits made possible by the partnership of KB and the Farming and Forestry Relief and Guarantee Fund (PGRLF).

Beneficial

A loan supported by PGRLF in the form of a partial interest rate subsidy.

Free of charge

You pay no fees for the PGRLF support.

Transparent

Receive current information about programmes offered by PGRLF, a.s.

Professional

Benefit from free advisory services provided by our specialists.

Why KB?

Invest

We will finance up to 100% of your investment outlay.

Let us help

We will assist you with the grant application preparation and processing.

Save

Benefit from lower interest rates on your loans with the PGRLF support.

How to get this product?

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About Loan Supported by PGRLF, a.s.

  • Loans intended for farming, forestry, water management and food processing industry businesses. The loans are available for the following individuals and corporations:
    • Micro enterprise – a business entity that has fewer than 10 employees and annual turnover or balance sheet total of less than EUR 2 million
    • Small enterprise – a business entity that has fewer than 50 employees and annual turnover or balance sheet total of less than EUR 10 million
    • Medium-sized enterprise – a business entity that has fewer than 250 employees and annual turnover of less than EUR 50 million or balance sheet total is less than EUR 43 million
    • Large enterprise – a business entity that has more than 250 employees and annual turnover of more than EUR 50 million or balance sheet total of more than EUR 43 million
  • Loans with PGRLF, a.s. support will fund up to 100% of your initial investment outlay
  • PGRLF does not charge any fees for the use of the provided support
  • Benefit from free advisory services provided by specialists at KB branches
  • General parameters of the PGLRF support programmes (with the exception of the Loan Collateral Programme):
    • Interest rate subsidy – up to 5% p.a. for payments made in due and timely manner (with interest rate charged to the client of no less than 0.5% p.a.)
    • For young farmers, the Support would be increased by 1% p. a. – this bonus would be provided until the year in which an applicant – Young Farmer – turns 40
    • Support is not provided for: overdrafts and revolving credits or lease payments

You might also like to know

  • The following programmes are available under the  Loans supported by PGRLF, a.s. umbrella:
    • Farmer Programme loan – investment support aimed at implementation of long-term investment projects. The projects should focus on restructuring of operations, efficiency improvements, upgrades of production assets, reduction of production costs, quality improvements, and production growth
      • Investment loan purpose:
        • Acquisition of machinery, equipment, and technology units
        • Construction, acquisition or upgrades of other production assets
        • Acquisition of breeding animals
      • Total loan for one applicant cannot exceed the following amounts (for the period from 1 October to 30 September of the following year):
        • CZK 10 million in case of investments in technology for primary agricultural production
        • CZK 50 million for investments in construction, acquisition or modernisation of other production assets
        • CZK 5 million in case of investments in acquisition of breeding animals with a view to improve the genetic value of the herd
      • Loan term:
        • Up to 8 years - let – loans for acquisition of technology for primary agricultural production
        • Up to 20 years – loans for construction, acquisition or upgrade of other production assets
        • Up to 4 years – loans for acquisition of breeding animals
      • Beneficiary:
        • Farming businesses engaged in primary agricultural production
        • “Active farmer” in case of investments for acquisition of breeding animals
        • Businesses with no financial difficulties
    • Land Purchase Programme loan – bridge loan for funding acquisition of privately held farmland
      • Investment loan purpose:
        • Acquisition of privately held farmland
        • Also available for acquisition of adjacent land plots with a view of combining them with existing land holdings
      • Loan amount:
        • Minimum loan amount: CZK 100,000
        • Total loan amount for one applicant cannot exceed CZK 10 million
      • Beneficiary:
        • Farming businesses engaged in primary agricultural production
        • Small or medium-sized enterprise
        • Businesses that comply with the terms and conditions for the provision of de minimis aid pursuant to Commission Regulation (EU) No. 1408/2013 - max. support limited to EUR 15,000
    • Loan with support from the Forestry programme – is intended for entrepreneurs who invest primarily into technology and equipment for forestry; supported investments are intended especially for reducing costs, improving quality or productivity, further extension of production or environmentally friendly forestry methods
      • Investment loan purpose:
        • Acquisition of forestry technology
      • Loan term and amount:
        • Up to CZK 20 million for an unlimited period of time
      • Beneficiary:
        • an entrepreneur:
          • who operates in the area of forestry and other activities in the area of forestry / wood mining / supporting activities for forestry
          • who is a micro-entrepreneur or has a small, medium-sized, or large business
          • who meets the de minimis conditions (as per COMMISSION REGULATION (EU) No. 1407/2013 – maximum amount of support is EUR 200 thousand)
          • whose earnings from forestry must amount to at least 25% of total earnings in the first accounting period following after the period in which the application was filed
          • who has no debts to the state, financial office, social security, SPU, SZIF, MZE and PGRLF
        • A natural person or legal entity who owns / leases or loans a forest:
          • who operates in compliance with the approved forestry plan or the accepted and valid forestry scheme, and is an entrepreneur, a municipality, or a voluntary union of municipalities
          • who meets the de minimis conditions (as per COMMISSION REGULATION (EU) No. 1407/2013 – maximum amount of support is EUR 200 thousand)
          • who has no debts to the state, financial office, social security, SPU, SZIF, MZE and PGRLF
    • Loan with support from the Wood Processing programme – a programme for facilitating the purchase of technology or equipment for wood processing which will allow the processing of wood and wood waste in individual parts of a production plan – supported investments must lead especially to reduced production costs, modernization, improvement of quality and further development of the business
      • Investment loan purpose:
        • purchase of technology and equipment in the specified production segments (e.g. drying of cut wood, steaming and waterproofing of solid wood, equipment for handling warehouses,…)
      • Loan term and amount:
        • Up to CZK 20 million for an unlimited period of time
      • Beneficiary:
        • is an entrepreneur:
          • who meets the de minimis conditions (as per COMMISSION REGULATION (EU) No. 1407/2013 – maximum amount of support is EUR 200 thousand)
          • who cannot have any debts to the state and other public institutions on the date of submission of the application
          • who is a micro-entrepreneur or has small, medium-sized, or large business
          • who operates in the following area(s):
            • sawing and waterproofing of wood
            • production of wooden, cork, wicker and straw products except for furniture
            • production of veneer and wood-based boards
            • manufacturing of other products in the area of constructional joinery and carpentry
            • production of other wooden, cork, wicker and straw products with the exception of furniture
        • is a municipality or a voluntary union of municipalities, or an entrepreneur:
          • who meets the de minimis conditions for support (as per COMMISSION REGULATION (EU) No. 1407/2013 – maximum amount of support is EUR 200 thousand)
          • who cannot have any debts to the state and other public institutions
          • who operates in:
            • sawing and waterproofing of wood
            • production of wooden, cork, wicker and straw products except for furniture
            • production of veneer and wood-based boards
            • manufacturing of other products in the area of constructional joinery and carpentry
            • production of other wooden, cork, wicker and straw products with the exception of furniture and at the same time is an institution receiving contributions from the state budget or a business entity founded by the municipality
    • Loan with support from the Forest Nursery programme – a programme for the creation of conditions for the development of forest nursery activities, where the recipient of support invests especially in machinery and technology for the operation of forest nursery activities – supported investments must lead especially to a reduction of production costs, modernization and quality improvements
      • Loan purpose:
        • investment into irrigation systems, machinery for the preparation of soil and soil care in forest nursery areas, machinery and technology for forest nursery activities for naked-rooted and container-rooted nursery stock, temporary storage of lifted nursery stock for forest wood plants, machinery and technology for processing of seed material of forest wood plants,…
      • Loan term and amount:
        • Up to CZK 20 million for an unlimited period of time
      • Beneficiary:
        • is an entrepreneur
        • is a micro-entrepreneur or has a small, medium-sized, or large business
        • meets the de minimis conditions (as per COMMISSION REGULATION (EU) No. 1407/2013 – maximum amount of support is EUR 200 thousand)
        • is listed in the central database of license holders for circulation of reproduction material for forest wood plants (IS ERMA2)
        • operates forest nursery activities in forest nurseries in forest areas
        • cannot have any debts to the state and other public institutions
    • Loan with support from the Processor programme
      • Loan purpose:
        • purchase of investment property related to the processing of agricultural products for the food or feed industries
      • Loan term and amount:
        • Up to CZK 50 million for an unlimited period of time
      • Beneficiary:
        • is an entrepreneur operating in the area of processing agricultural products
        • meets the de minimis conditions (as per COMMISSION REGULATION (EU) No. 1407/2013 – maximum amount of support is EUR 200 thousand)
        • earnings from the processing of agricultural production must be at least 25 % of total earnings in the first accounting period following after the period in which the application was filed; alternatively, if the applicant operates in the area of processing agricultural products and also agricultural production, then earnings from agricultural production must achieve at least 25% of the total earnings. Furthermore, these minimum earnings must be reached during the whole effect and validity of the contract on the provision of support
    • Loan Collateral Programme loans
      • Loan purpose:
        • Acquisition of fixed assets used in primary agricultural production, food processing, forest management or wood processing
        • Financing of information sharing and promotional projects aimed at promoting farm and food products made within the EU’s internal market and/or in third countries
      • Loan amount:
        • CZK 5 million (acquisition of fixed assets for primary farming production, food processing, forest management or wood processing)
        • CZK 10 million (acquisition of fixed assets for primary farming production)
        • CZK 50 million (acquisition of fixed assets for food processing, forest management and wood processing or information and promotional projects)
      • Maximum guarantee amount:
        • 70% of outstanding loan principal (or 80% in case of loans intended for information and promotional projects)
      • Maximum guarantee period:
        • 60 months from the date it is issued by PGRLF
      • Beneficiary:
        • Businesses engaged in primary farming production (animal and vegetable production) and/or food processing Revenue from the aforementioned activities represents more than 25% of the total revenue during the last fiscal period prior to the application filing
        • Business, municipality or voluntary municipality association owns, leases or borrows forests; it is not a legal entity commissioned to manage state-owned forests
        • Business engaged in forest management, logging, saw-mill operations and wood impregnation, production of wood-based veneers and boards Micro, small or medium-sized enterprise Revenue from forestry activities represents more than 50% of the total revenue during the last fiscal period prior to the application filing (area of forest management and logging) – this does not apply to startup businesses
        • Municipality or voluntary municipality association or non-departmental public body or a public corporation established by a municipality engaged in saw-mill operations and wood impregnation, production of wood-based veneers and boards
        • Business who have an Information sharing and promotional project aimed at promoting farm and food products made within the EU’s internal market and/or in third countries approved by the European Commission and co-financed from EU funds
      • All applicants must comply with the following requirements:
        • Pay Guarantee fees to PGRLF (if an applicant is eligible to receive de minimis aid, it can cover the Guarantee-related fees from the aid)
        • Issue a promissory note to PGRLF
        • Applicant cannot have any financial difficulties
        • No outstanding payments to the government and other institutions

Intended for

Farming, forestry, water management, and food processing businesses.