Financial instruments successful in promoting growth and development of companies

EU funding is allocated to companies also through the so-called financial instruments implemented by the Slovenian Export and Development Bank (SID Bank) in the framework of the Fund of Funds. The first years of implementation have shown that companies welcome such support. The Fund of Funds enables companies to drawn on the available European Cohesion Policy funding for sustainable growth and development, investment in innovation and current business by providing debt and equity financing. The funding is available for research, development and innovation, enhancing the competitiveness of the economy, in particular small and medium-sized enterprises (SMEs), energy efficiency and urban development. So far, SID Bank has been successful in drawing on two tranches of European Cohesion Policy funding in the total amount of EUR 126.5 million. From the beginning of the first funding in December 2018 to the end of March 2020, SID Bank and the financial intermediaries with their financial instruments coupled with European Cohesion Policy funding and the funding of financial intermediaries, concluded 2,431 credit agreements worth over EUR 97 million which made numerous projects and investments possible.    

In cooperation with Ministry of Economic Development and Technology they developed adapted loan programmes which facilitate final recipients (start-ups, sole entrepreneurs, small and medium-sized enterprises, social enterprises, large businesses as well as municipalities and cooperatives) the use of the available funding for development projects and growth of business. Thus, the following financial instruments are implemented in the framework of the Fund of Funds:

• microloans for sole entrepreneurs, start-ups, micro and small enterprises which are allocated through the Slovene Enterprise Fund and Primorska hranilnica Vipava savings bank
• loans for research, development and innovation for sole entrepreneurs, start-ups, small and medium-sized enterprises, large business and cooperatives which are allocated through Sberbank and Gorenjska banka or directly through SID Bank
• loans for financing projects related to energy-saving renovation of public buildings for central and wider public sector as well as ESCO companies which are allocated directly through SID Bank
• loans for financing urban development projects for urban municipalities, public municipal housing funds as well as other legal entities governed by public or private law who are managers of buildings and/or areas of public use, which are allocated through SID Bank    
• equity and quasi-equity financing for micro and small enterprises established as a public limited-liability company, private limited-liability company or a limited partnership, which is allocated through the Slovene Enterprise Fund.

Through the Fund of Funds, SID Bank has already supported a number of high-quality projects related to urban development as well as energy-saving renovation of public buildings, for example the investment by the Log-Dragomer municipality for the energy-saving renovation of a building which today serves as the municipality’s main office. The project covers revitalising the facility Stara šola Log. The investment enabled the establishment of energy management of the building with the aim of making functional improvements and enhancing energy efficiency as well as lowering energy costs and cost related to the maintenance and management of the building, and reducing greenhouse gas and particle emissions. The building was very old and worn out but with the help of the SID Bank funding the employees were given high-quality and modern establishment for work.

In the framework of the direct implementation of the financial instruments of the Fund of Funds, SID Bank also provides funding for companies, municipalities and ESCO companies. So far EUR 11.8 million has been allocated.

Under the financial instrument research, development and innovation (RDI) SID Bank allocated funding to the Slovenian company TIK d.o.o. from Kobarid which manufactures top-level single-use medical equipment. This growing and modern company is celebrating its 60^th anniversary priding itself with the so-called clean space, which is an investment, also covering automating the production, worth over EUR 1.5 million. EUR 700,000 was granted under the European Cohesion Policy for RDI. The cleanroom project will close by the end of 2020 with potential earlier closure also thanks to financial instrument support. Financial instruments thus continue to support growth and development of the Slovenian economy and the innovative solutions developed by the Slovenian companies.                  

Implementation of financial instruments and other info