Indirect development loan

Indirect development loan is allocated by SNCI via one of the local authorized banks


Indirect development loans can be granted to companies realizing projects concerning business creation, innovation, expansion, replacement or transfer, and having substantial impact on national economic development.

Beneficiaries shall possess a valid business permit issued by the Ministry of the Economy.


Indirect development loans are granted for financing of tangible and intangible depreciable assets, as well as land which is used exclusively for professional purposes.

Following projects are eligible for an indirect development loan, provided that the beneficiary could establish on the basis of a business plan:

  • a project related to expansion of his current business activities, or
  • an acquisition project with a purpose to replace his depreciable tangible and intangible assets, or
  • a project related to development and communication of products/services, processes or organizational methods new or substantially improved/changed as compared to the state of the art in the concerned industry sector, and which carry a risk of technical or industrial failure, or
  • a project of a start-up or business transfer.

This loan cannot be combined with other SNCI instruments.

Eligible costs

Investments in depreciable assets and negative operational cash-flows carried out within the project of business development are eligible for the indirect development loan.

Depreciable investments and negative operational cash-flows include particularly land, buildings, equipment, machinery and professional facilities, personnel expenditures, patent filing fees, expenses related to contract research, use of databanks, technical libraries and laboratories, acquisition of patents/licenses, project feasibility studies, innovation support services like market research, implementation of new regulatory standards, testing and certification, as well as a one-year budget related to marketing/promotion of new products/services. Production and distribution costs are excluded.

Fixing of loan amounts

The indirect development loan can go from EUR 12.500 to EUR 10.000.000 without exceeding 40% of eligible costs, and taking into account the overall debt to SNCI.

At least 20% of investments and expenses shall be co-financed by own resources.

Amount of the SNCI loan(s) cannot exceed the total amount of equity of the loan beneficiary, nor the part of the project financing provided by commercial banks.


Maximum loan duration is 10 years. Based on the project requirements, it can be extended by a length of the disbursement and the grace periods, which in total cannot exceed 3 years.

Interest rate

The interest rates are fixed by the SNCI's Board of Directors on the basis of interest rates on the capital market as well as on the basis of the SNCI refinancing costs. Currently, the interest rate stands at 1,375% for a medium term loan (5 years) and at 1,625% for a long term loan (6-10 years).


The SNCI shall benefit from same guarantees as those granted to other bank creditors of the loan beneficiary.


Loans are disbursed upon written request from the intermediary bank.


Repayment is done by constant quarterly instalments. A grace period of maximum three years on the repayment of the capital may be granted. Interests are payable at the end of each period.

Early repayments are possible without penalty.


Application for an indirect development loan is submitted to SNCI via one of the local authorized banks.