RRF loans for achieving economies of scale

Based on new or existing partnerships

The final percentage of the investment plan that will be financed with a Recovery and Resilience Facility (RRF) loan is determined based on the percentage of the budget that corresponds to

investments for achieving economies of scale.

• For existing partnerships, you take out a loan for up to 30% of the investment plan budget.
  
• For new partnerships, acquisitions and mergers, you take out a loan for up to 40% of the investment plan budget.

Up to 50% from the RRF

You get financing from the RRF and co-financing by us with the following percentages:

• 50% maximum through an RRF loan
• 30% minimum through a co-financing loan
• 20% minimum through investor own funds

Lump-sum or multiple disbursements

The RRF loan and the co-financing loan may be disbursed in a lump sum or in multiple disbursements, depending on the progress of the eligible investment.

Minimum interest rate depending on business size

The minimum interest rate of the RRF loan is determined by ministerial decision:

• 0.35% for small and micro businesses
• 1% for medium-sized and large businesses

Due to the low interest rate of the RRF loans, the total interest for financing is very competitive.

From 3 to 15 years

The RFF loan term is 3 to 15 years, depending on the nature of the investment and our lending policy.

In case you are interested in project finance, the loan term may go up to 20 years from 1st disbursement. 

Up to 5 years grace period

You may get up to 3 years grace period to repay the RRF loan and the co-financing loan.

The grace period may be extended by up to 5 years, if the eligible expenditures take up more time.

3 categories of investments

The projects for achieving economies of scale are split into 3 categories of investments:

• Partnerships (existing or new)
• Acquisitions
• Mergers among non-associated companies

Eligible investments

The eligible investments must exclusively pertain to private investments. Achieving economies of scale involves:

• Existing or new partnership
• A new partnership arising from acquisition/merger

What is termed as “partnership”

A partnership is any activity governed by long-term partnership agreements of a binding nature with contractual or real duration longer than 5 years.

The agreements must be among non-associated companies with one of the following objectives:

• Joint promotion of business activities.
• Establishment of legal persons with the same goals (e.g. joint ventures, co-ops, organisations and teams of producers irrespective of legal form).

What are the types of partnerships

Examples of partnership for achieving economies of scale:

• Vendor partnerships
• Exporting partnerships
• Contract farming
• Franchises
• Joint research and development projects

Other eligibility criteria

• The participating businesses must be non-associated.
• The created partnership must be in effect for at least the next 5 years.
• The total turnover of the participating businesses must be at least 50% higher than the turnover of the business with the highest turnover.
• At least 20% of the expenditures for the investment plan must pertain to the objectives of the new partnership.