SME Financing with EIB support
Product description
Financing of SME clients with EIB support is dedicated to financing of investments of small and medium size enterprises (SME) in agriculture, industry and services. Raiffeisen – Leasing provides to clients advantageous conditions for financing of projects financed by financial products such as financial leasing or hire purchase.
What is the SME definition?
Eligible entities are autonomous small and medium sized enterprises (“SMEs”) with fewer than 250 employees (full time equivalent).
In general, SMEs are considered autonomous if:
(i) less than 25% of their equity is owned by another company; or
(ii) 25% or more of the equity is owned by another company, but the group employs fewer than 250 persons on a consolidated basis*; or
(iii) 25% or more of the equity is owned by a public body, AND the public body is a local authority with an annual budget of less than EUR 10m and has fewer than 5000 inhabitants; or
(iv) 25% or more of the equity is owned by companies or institutions in line with the exceptions detailed in the Commission recommendation 2003/361/EC of 6 May 2003, article 3, paragraph 2 (i.e. venture capital funds or “business angels”, provided that they invest less than EUR 1.25m in the same company, universities or non-profit research centres, institutional investors including regional development funds).
* To calculate the number of employees in case of non-autonomous companies, the number of employees of the upstream or downstream company has to be added. In case of partner enterprises (a company holds between 25% and 50% of another company’s equity): The number of employees of the SME financed is to be aggregated with the number of employees of the partner enterprise by applying the percentage of participation in the latter. In case of linked enterprises (a company holds more than 50% of another company’s equity): The number of employees of the SME financed is to be aggregated with the number of employees of the linked enterprise by adding the total number of employees of the latter. The aggregation has to comprise all partner enterprises situated immediately upstream or downstream of the SME financed, and all linked enterprises.
What projects can apply for EIB conditions?
The total cost of each Project should not exceed the equivalent of EUR 25 000 000.
The financed amount may not exceed EUR 12.5m (or other currency equivalent).
The term of loans granted by Intermediaries to SMEs should not exceed the economic and technical life of the Project financed, with a minimum lifetime of 2 years.
Advantage of EIB support
Raiffeisen – Leasing, s.r.o. provides to the client an advantage ensued from favoured EIB sources.
The calculation of regular instalments is done with lower interest rate at least by 0.25% p.a. in comparison to standard conditions.
What is the procedure?
The SME client applies for financing. The client provides to Raiffeisen – Leasing, s.r.o. documents that are regularly requested for approval process.
Raiffeisen – Leasing, s.r.o. proceeds the approval process.
In case of positive approval result the customer signs a contract with Raiffeisen – Leasing, s.r.o., the part of the contract is a clause on financing via the EIB.
The client pays an advance payment and takes over the financed asset from the supplier.
Excluded sectors
Projects in any sectors except the following are eligible for inclusion as Final Beneficiaries of EIB Loans for SMEs:
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Production of weapons and ammunition, arms, military or police equipment or infrastructures, and equipment or infrastructure limiting people’s individual rights and freedom (i.e. prisons, detention centres of any form);
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Gambling and related equipment;
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Tobacco manufacturing, processing, or distribution;
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Activities involving live animals for experimental and scientific purposes insofar as compliance with the "Council of Europe’s Convention for the Protection of Vertebrate Animals used for Experimental and other Scientific Purposes" cannot be guaranteed ;
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Activities which give rise to environmental impacts that are not largely mitigated and/or compensated (see also section 3. about conformity with EU directives and national laws on environment);
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Sectors considered ethically or morally controversial, e.g. research on human cloning;
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Pure real estate development activity;
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Pure financial activities e.g. trading in financial instruments;
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Land purchase is excluded unless it is technically absolutely essential for the investments. Financing of purchase of farmland is entirely excluded.
In case of any questions regarding financing with EIB support, do not hesitate to contact our sales director Mr. Premysl Benes, tel. number 221 511 616, e-mail: premysl.benes@rl.cz, fax 221 511 666.