Ministry of Development is going to allocate additional means to loans and guarantees for entrepreneurs from Eastern Poland. Over 23.5 million zlotys from the program called Development of Eastern Poland Program will be allocated to micro-, small and medium enterprises in the form of loans and guarantees in the Lublin, Podkarpackie, Podlaskie, Świętokrzyskie and Warmińsko-Mazurskie Voivodships – informed Under Secretary of Development Adam Hamryszczak. These funds enable development of companies and creation of new working places – added Hamryszczak.
Means intended by Ministry of Development complete the project of Bank Gospodarstwa Krajowego (BGK) „Re-guarantees and loans as a chance for increasing external financing of SMEs. The instrument of support guarantee and loan funds in Eastern Poland”. Over 2.5 thousand enterprises benefitted from this program till the end of the third quarter of last year. Firstly, new means will be allocated to financial intermediaries and then to companies.
Ministry of Development made a decision about extension of the project by the end of September 2016 and then allocate additional millions to it in order to give a chance for development to other entrepreneurs from Eastern Poland – pointed out Under Secretary of the resort.
The program of BGK is aimed at increase in availability of companies from the SMEs sector from the area of Eastern Poland to the external sources of financing through the so called financial instruments. Bank grants feedback to financial entities (global loan) which perform a function of financial intermediaries (guarantee and loan funds). Then these institutions transfer means to end users. Intermediaries who participate in the program are elected through competitions organized by BGK. So far six of them have been organized (three for institutions offering re-guarantees and loans). In the period from 28th December 2015 to 12th January 2016 a new recruitment for applications from intermediaries who want to participate in the project is being conducted.
Loans and guarantees granted within the BGK project are a great chance for companies who want to invest in development and do not have proper financial means or securities in order to gain support on the commercial market. Additionally, a short loan history or its lack hamper, or even make the receiving of a credit upon the market principles impossible – emphasized the Under Secretary.
Financial intermediaries selected by BGK will grant support to entrepreneurs on preferential conditions. This support will be used to introduce modern technologies, purchase new equipment, modernize structures, create working places or other activities aimed at development of the company.