The Slovenian Enterprise Fund has announced an extensive financial assistance program for businesses that were recently affected by the catastrophic floods in August 2023. Through the public tender “P7P 2023 – Credit for Flood Damage Relief in August 2023,” the fund will provide access to a total of €30 million in favorable loans intended for the recovery and mitigation of economic damage caused by the floods to numerous businesses. The goal of this program is to assist in the restoration of damage and the reestablishment of normal operations for approximately 600 companies.
Companies directly affected by the August 2023 floods will be eligible for loans ranging from €15,000 to €100,000. To qualify for these loans, they must meet certain conditions:
- The loan amount must not exceed 40% of the net sales revenue achieved in 2022.
- The total amount of allocated funds for flood damage relief must not exceed the actual damage suffered by the company.
- The company must have at least one employee.
- The company must have been established before January 1, 2022.
- The company must have a credit rating of at least SB8.
Funds obtained through this program can be used to finance various expenses, such as the purchase of new equipment, material costs, services, VAT, and other operational expenses. The loan will cover up to 100% of the eligible project costs incurred between August 4, 2023, and May 31, 2024.
In addition, loan recipients will benefit from favorable terms, including lower collateral requirements, eight promissory notes for smaller loans, eight promissory notes and personal guarantees for larger loans, a low interest rate (fixed interest rate of 0.5%), an extended repayment period, and the option of deferring payments for up to six months, with the possibility of extending it to 24 months.
It’s worth noting that approval and loan management costs are not charged, further easing the financial burden for businesses dealing with flood recovery.
This financial assistance program represents a crucial opportunity for affected companies to secure funding for the restoration and reestablishment of their operations after the devastating floods in August 2023.