OTP banka Srbija joins Support Program for small businesses

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Source: OTP banka Srbija

OTP banka in Serbia is also participating in this year’s Small Business Support Program for the purchase of equipment, which combines favorable loans and grants intended for the investments and stimulation of faster economic development. The program is implemented by the Ministry of Economy in cooperation with the Development Agency of Serbia and selected commercial banks and leasing companies. OTP banka was chosen in this year’s tender of the Ministry of Economy as one of the eight best-ranked banks and leasing companies, based on its offer and the fulfillment of the tender conditions.

The Ministry of Economy, in cooperation with the Development Agency of Serbia and with the support of the project “Serbia and the EU – Equipment for the Economy” financed by the European Union, this year is awarding grants to micro and small businesses, entrepreneurs and cooperatives, business entities that perform production or construction activities, for procurement of equipment. The total grants amount to about RSD 3.1 billion (approx. EUR 27 million), the Ministry of Economy provided an amount of RSD 1.9 billion (approx. EUR 16 million), and the European Union provided grants and technical support for the implementation of the project in the total amount of EUR 11 million. The goal of the Program is to facilitate the financing of the purchase of equipment and to strengthen the competitiveness of small businesses, as support for the investments and an incentive for faster economic development, and the funds determined by the Program are intended for the co-financing of the purchase of new equipment directly involved in the production process of exchangeable goods, which includes the production of equipment and/or machinery, transportation – the manipulative means included in the production process and internal transport, as well as parts, specialized tools for machines, machines and equipment for improving energy efficiency and ecological aspects of production, and includes new construction machinery for the needs of performing construction works.

For the allocation of grants under the Small Business Support Program for the purchase of equipment in 2022, a public call was published for which micro and small businesses, entrepreneurs, and cooperatives who meet the conditions can apply until the intended funds are used up, and at the latest by the end of this year.

The business entities that meet the conditions of the Program and are conditionally approved for a loan or financing may exercise the right to non-refundable co-financing of up to 25% of the net value of the equipment being purchased. The participation from the company’s funds amounts to 5% of the total value of the equipment, while the rest is provided from loans from the commercial banks or financial leasing from the leasing companies involved in the implementation of this Program.

The amount of grants that can be awarded to a business entity is determined concerning the number of permanent employees, as of December 31st, 2021, according to the records of the Central Register of Mandatory Social Insurance. If there is one employed person, the grant can be up to RSD 1 million (approx. EUR 8.5 thousand), for those with two to five employees, this amount is up to RSD 2.5 million (approx. EUR 21 thousand), and for a business entity with more than six employees, the amount of the grant goes up to RSD 5 million (approx. EUR 42.5 thousand). The amount of approved non-refundable aid in the amount of up to 25% of the net value of the equipment to be purchased cannot be less than RSD 500 thousand (approx. EUR 4 thousand), nor more than RSD 5 million (approx. EUR 42.5 thousand).

Those who are interested in the Small Business Support Program for the purchase of equipment can get additional information at the nearest branch of OTP Bank, where they can also submit documentation and a loan application. For more information, the customers can call the Contact Center of OTP Bank or find out details on the website of the Ministry of Economy here.

 

Source: the Bank`s press release dated June 23, 2022