The document summarizes the historical development and activities of the Croatian Agency for SMEs, Innovations and Investments. It was established in 1994 and has since supported SME development through guarantee programs, grants, consultancy services, and other financing programs. It issues guarantees for bank loans to SMEs under EU state aid rules. It also recently introduced equity guarantees and microloan programs. Going forward, it will play a central role in supporting entrepreneurship through the implementation of €1 billion in EU structural funds for 2014-2020.

2. LETTER OF INTENT FOR A GUARANTEE AND
GUARANTEES FOR EQUITY
Istanbul, Turkey
Goran Becker, M.Sc.
Croatian Agency for SMEs, Innovation and Investments
Republic of Croatia
www.investcroatia.hr

3. www.investcroatia.hr
 Croatian Agency for SMEs, Innovation and Investments established by
the Government of the Republic of Croatia with the purpose of enhancing
SME development and promoting investment.
 Independent institution under the supervision of the Ministry of
Entrepreneurship and Crafts.

4.  Croatian Guarantee Agency – 1994
 goal: supporting the establishment and development of entrepreneurship
in Croatia
 Croatian Agency for SMEs – 2002
 goal: supporting the development of SMEs and increasing their share in
the overall economy of Croatia
 Croatian Agency for SMEs and Investments – 2012
 goal: supporting entrepreneurs to enter investment projects that provide
economic development at the national level
 Croatian Agency for SMEs, Innovations and Investments – 2014
 goal: creating a unified system with the Business Innovation Croatian
Agency to support entrepreneurs in all the stages of their business
HISTORICAL DEVELOPMENT OF THE AGENCY
www.investcroatia.hr

5.  In its 20 years of existence, the Agency consistently promoted small business
and entrepreneurship in Croatia with significant results
 Provided active support to Croatia’s economic development
 Issuing guarantees for bank credits to SMEs
 Promoting investments
 Implementing grant schemes
 Co-financing consultancy services
 Issuing micro loans
 Actively promoted Croatia as an attractive location for investment
 Supported innovations and innovative projects
 Structural Funds – New role
 The Agency becomes a central place to support development of
entrepreneurship
MISSION AND GOALS
www.investcroatia.hr

6.  HAMAG-BICRO issues first call guarantees for SME loans
 Cooperates with all business banks in Croatia
 Issues guarantees using the network of business banks
 Issues letters of intent for start-ups
 Average guarantee is EUR 170,000
 HAMAG-BICRO uses EIF counter-guarantees (successfully passed EIF due
diligence, including state aid compliance)
GUARANTEE MODEL
www.investcroatia.hr

7.  Guarantees are issued under de minimis or GBER rules
 Maximum guarantee is 80% of credit principal
 Maximum guarantee is EUR 2.5 mil GBER/ EUR 1.5 mil de minimis
 Each entrepreneur is given a letter explaining which type of state aid is given
and in which amount
 Cumulation is checked before issuing a guarantee
 GBER guarantees are calculated in accordance with safe harbor premiums as a
sum of discounted state aid per year
GUARANTEE MODEL – STATE AID
www.investcroatia.hr

8.  Croatian start-ups are faced with great difficulties in accessing bank loans
 They lack business experience and collateral
 HAMAG BICRO decided to implement a different way of issuing guarantees
– ex ante approach
 An SME first comes to HAMAG and its Business Plan is evaluated and a
letter of intent issued
 This letter of intent is valid for 6 moths during which the SME tries to find a
willing bank
 HAMAG issued 37 guarantees for start-ups in 2012 and 137 in 2013
GUARANTEE MODEL – LETTER OF INTENT
www.investcroatia.hr

9.  Equity guarantees are issued in order to enable risk sharing between a
business angel or venture capital fund and HAMAG-BICRO with regard to
equity investments made in target companies.
 they guarantee up to 50% of the invested amount
 no collateral is needed to apply
 An equity investment is considered to be an acquisition of regular and
preferred stocks, or shares of the target company
 Target companies may exclusively be small and medium-sized enterprises
(SMEs), registered exclusively in the Republic of Croatia
EQUITY GUARANTEES INITIATIVE
www.investcroatia.hr

10.  The duration of an equity guarantee is from 2 years to 7 years
 Equity guarantees cannot be activated in the first six months of issuing
 Amount of an equity guarantee:
 for business angels, up to EUR 80,000
 for venture capital funds, up to EUR 600,000
EQUITY GUARANTEES INITIATIVE
www.investcroatia.hr

11.  Loan program, which started in 2013 as a pilot scheme
 goal: to facilitate access to financing micro enterprises
 intended for investment in fixed assets and working capital
 amount per loan: max. EUR 15,740
 2013
 220 received / 32 approved loan requests
 total value: EUR 270,000 (average 8,425 per loan)
 result: 7 start-ups and 80 new jobs
 2014 (open until 1.11.2014)
 151 received / 21 approved loan requests (25.9.2014)
 EUR 655,860 allocated
 200 requests are expected, including 50 loans approved
MICRO LOANS – SUCCESS STORY
www.investcroatia.hr

12.  The Agency becomes a central place to support the development of
entrepreneurship
 Within the framework of the Operational Programme in competitiveness
and cohesion for the financial period 2014-2020, Croatia has decided to
allocate 40% of the total ERDF to support small and medium-sized
enterprises, research and innovation and thus shown to be seriously oriented
towards competitiveness and long term growth
 Ministry of Entrepreneurship and Crafts and the Croatian Agency for SMEs,
Innovations and Investments are the bodies responsible for the
implementation of all planned activities for which EUR 1,000,000,000.00
funds for the period 2014-2020 are foreseen
STRUCTURAL FUNDS – NEW ROLE
www.investcroatia.hr

13. THANK YOU FOR YOUR ATTENTION !
www.investcroatia.hr
goran.becker@hamagbicro.hr
Phone: +385 1 488 1000
Fax: +385 1 488 1009
www.investcroatia.hr