New guarantee program for loans and factoring limits at Millennium Bank

As part of the agreements signed in July this year with BGK for the new guarantee programs (“successors” of liquidity guarantees), Millennium Bank in Poland made available the option of securing loans and reverse factoring with a crisis guarantees. The remaining guarantee programs are continued under “covid conditions” until December 31st this year. This is another element of Millennium Bank’s support for entrepreneurs.

These are de minimis guarantees, Businessmax guarantees, liquidity guarantees, and a completely new crisis guarantee program. The existing guarantee programs implemented with BGK have been extended to the so-called “сovid conditions” by the end of this year.

“Millennium Bank has been cooperating with BGK for many years, offering companies solutions that facilitate their daily operations. BGK guarantees implemented under several programs enable entrepreneurs to access financing in the most difficult moments, such as two-year pandemic period and the current war in Ukraine,” – said Iwona Kęsik, Product Manager in the Banking Department for Companies of Millennium Bank.

“Active participation in guarantee programs is part of our strategy of supporting entrepreneurs not only in the area of financial liquidity but also in financing development needs in the form of investments,” – said Andrzej Gliński, Member of the Management Board of Millennium Bank. “We have high hopes for the work on new proposals that will appear on the market at the end of 2022 – beginning of 2023. We hope that programs such as Biznesmax guarantees will be implemented in a new and even more attractive version of the European Funds for the Modern Economy”.

The new crisis guarantees for loans and factoring limits are:

A program for medium and large enterprises (in the case of factoring also small businesses), securing a loan or factoring limit in PLN or foreign currency in the amount of 80 % of the capital. The customer should meet the so-called Crisis criteria as of the application submission date or February 1st, 2022.
The maximum amount of the guarantee is PLN 200 million, and the maximum guarantee period is:
– 39 months for loans to finance day-to-day operations.
– 72 months for investment loans.
– 27 months for the factoring limit.

The exposure under factoring loans and limits with a liquidity or crisis guarantee may not exceed PLN 250 million.

The maximum amount is determined based on: 15% of the average annual turnover for the last three closed accounting periods or 50% of the energy costs for the 12 months before the application for the guarantee.

In the case of the de minimis guarantee program (the program for micro, small and medium-sized enterprises), the entrepreneurs are exempt from the fee for the first year of using the guarantee until the end of 2022 and receive an 80% level of coverage. The maximum guarantee period is 75 months for the working capital loan and up to 120 months for the investment loan. The amount of the de minimis guarantee is up to the equivalent of EUR 1.5 million.

Businessmax guarantees are a unique combination of guarantees and subsidies. As part of the program, the company uses collateral for the loan and may obtain a partial or full reimbursement of interest paid to the Bank. It is also a program for micro, small and medium-sized enterprises that guarantees loan repayment in PLN. It is available under two types of state aid: regional aid or de minimis aid. The guarantees are free for the entire term of validity.

• by the end of 2022, the guarantees are available on special terms – they support investments and financial liquidity of companies, secure up to 80% of the loan capital, and can be granted for a term of up to 20 years and up to the equivalent of EUR 2.5 million.
• an important feature is the payment of credit interest up to 100% of its amount. This is an additional benefit that does not occur in other BGK guarantee programs, and significantly reduces the cost of the loan granted.

The process of applying for financing with a BGK guarantee at Millennium Bank takes place depending on the customer’s preferences in a traditional way or using digital channels and a qualified signature.

Source: the Millennium Bank`s press release dated August 08, 2022