Program for the Development of Small and Medium Enterprises (SMEs) in Albania
This is a joint program of the Italian Government and the Albanian Government, with the aim of improving financial access of Albanian SME through a soft loan of 36 million Euro, 5 million Euro guarantee fund and technical assistance for SMEs. The first phase was implemented during the years 2008-2013, while the second phase is being implemented during the period 2015-2020.
From this program benefit all entities, natural or legal persons, who own or represent micro, small or medium enterprises and who currently have an entrepreneurial activity or who wish to start an activity (start-up) in Albania, in various sectors such as agriculture, agro-industry, fishing and aquaculture, manufacturing and processing industry, communication and information technology, natural energy production, transport, tourism and services. Priority is given to projects newly created by Albanian immigrants living in Italy.
Eligibility criteria:
- The company is registered in Albania;
- Not less than 51% of the company's capital is owned by Albanian citizens;
- Annual turnover not higher than 10 million Euro;
- Number of employees not higher than 250.
Loan criteria for SMEs: Project value: from 50,000 Euro to 500,000 Euro; The scope of the loan: • At least 70% of the loan should be used to purchase machinery, equipment, technology, technical assistance, industrial licenses, maintenance, spare parts and raw materials of Italian origin; • Maximum 10% of the loan can be used to purchase the raw materials related to the main investment; • Maximum 30% of the loan can be used to cover local costs or from other developing neighbour countries.
Loan criteria for “small projects”: Project value: from 15,000 Euro to 50,000 Euro. Target group: Micro, small and medium enterprises newly created (Start-up) or existing. The scope of the loan: • At least 40% of the loan should be used to purchase machinery, equipment, technology, technical assistance, industrial licenses, maintenance, spare parts and raw materials of Italian origin; • Maximum 60% of the loan can be used to cover local costs or from other developing neighbour countries.
The loan criteria:
- Interest rate applied: A maximum of 3% annual interest for loans in Euro; A maximum of 4% annual interest for loans in ALL;
- Repayment period from 3 - 8 years;
- Grace period (only the interest rate shall be paid), from 1 to 2 years.
The Albanian Guarantee Fund for SMEs: of 5 million Euro is a financial instrument which enables the provision of guarantees in the form of collateral to stimulate crediting from financial institutions for micro, small and medium enterprises that face difficulties in accessing to bank loans due to insufficient guarantees. The Albanian Guarantee Fund can be used only to guarantee those loans financed under the Italian-Albanian Programme for the Development of Albanian SMEs through banks or non-bank financial institutions, partners to the program to cover up to 50% of the potential risk in liquidating the loan on time for standard projects and up to 60% for SMEs priority projects.
For more information: https://www.prodaps.al/