Loans supported by PGRLF, a.s.

• Loans intended for businesses in the area of farming, forestry, water management, and processing industry engaged with the farming produce processing
• Loans are available for the following individuals and legal entities:
  - Micro enterprise – a business entity that has less than 10 employees and annual turnover and/or annual balance sheet amount of no more than EUR 2 million
  - Small enterprise - a business entity that has less than 50 employees and annual turnover and/or annual balance sheet amount of no more than EUR 10 million
  - Medium-sized enterprise - a business entity that has less than 250 employees and annual turnover of no more than EUR 50 million or annual balance sheet amount of no more than EUR 43 million
  - Large enterprise - a business entity that has more than 250 employees and annual turnover of more than EUR 50 million or annual balance sheet amount over EUR 43 million
• Finance up to 100% of your investment with loans supported by PGRLF, a.s.
• No fees charged for the use of the provided support
• Benefit from free advisory services provided by specialists at KB branches
• General characteristics of the support programmes (with the exception of the Loan Security Programme):
  - Interest rate subsidy – up to 5% p.a. for payments made in due and timely manner (with interest rate charged to the client of no less than 0.5% p.a.)
  - For young farmers, the Support increased by 1% p. a. – this bonus would be provided until the year in which an applicant – i.e. young farmer – turns 40
• Support is not provided for: overdrafts and revolving credits or payment of liabilities arising from lease (leasing) agreements

Investment support particularly targeting implementation of long-term investment projects, with a view to promote restructuring and effectiveness, modernisation, reduction of production costs, quality improvements, and further development of farmers.

Investment loan purpose:

• Acquisition of machinery, equipment, and technology units
• Construction, acquisition or modernisation of movables
• Acquisition of breeding animals

Total loan funds for one applicant cannot exceed the following amounts (for the period from 1 October to 30 September of the following year):

• CZK 10 million in case of investments in technology for basic farming industry
• CZK 50 million in case of investments in construction, acquisition or modernisation of immovable assets within farming establishments
• CZK 5 million in case of investments in acquisition of breeding animals with a view to improve herd’s genetic value

Loan term:

• Up to 8 years – loans for acquisition of technology for basic farming industry
• Up to 20 years – loans for construction, acquisition or modernisation of immovable assets within farming establishments
• Up to 4 years – loans for acquisition of breeding animals

Beneficiary:

• Farming businesses engaged in primary farming production
• “Active farmer” in case of investments for acquisition of breeding animals
• Entities that are not in difficulties

These loans address temporary shortage of primary farmers’ own funds for the acquisition of private land

Investment loan purpose:

• Acquisition of private farming land
• Also available for acquisition of other land that forms a logical part of acquired farming land

Loan amount:

• Minimum loan amount: CZK 100,000
• Total loan funds for one applicant cannot exceed CZK 10 million

Beneficiary:

• Farming businesses engaged in primary farming production
• Small or medium-sized enterprises
• Entities that comply with the terms and conditions for the provision of de minimis aid pursuant to Commission Regulation (EU) No. 1408/2013 - max. support limited to EUR 15,000

These loans are intended for businesses namely investing in forestry management machinery or mechanisation - particularly to reduce cost, improve quality and productivity, further develop production or ensure more environmentally friendly operations.

Investment loan purpose:

• Acquisition of forestry technology

Loan amount and term:

• Up to CZK 20 million for an unlimited period of time

Beneficiary:

• Businesses engaged in forestry management and other forestry activities (logging) and subsidiary forestry activities
• Micro, small, medium-sized or larger enterprises
• Entities that comply with de minimis terms and conditions (pursuant to Commission Regulation (EU) No. 1407/2013 - max. support limited to EUR 200,000)
• Revenue from forestry management must amount to at least 25% of the total revenue of the given entity during the first fiscal period after the application filing
• No outstanding payments to the government, Revenue Authority, Czech Social Security Administration, State Land Office, State Agricultural Intervention Fund, Ministry of Agriculture, or the Farming and Forestry Relief and Guarantee Fund as of the application date

Individuals or legal entities, who own, lease or borrow forests and:

• Carry out their activities pursuant to an approved forest management plan or adopted applicable forest management outline - either a business, municipality or voluntary municipality cluster
• Comply with de minimis terms and conditions (pursuant to Commission Regulation (EU) No. 1407/2013 - max. support limited to EUR 200,000)
• No outstanding payments to the government, Revenue Authority, Czech Social Security Administration, State Land Office, State Agricultural Intervention Fund, Ministry of Agriculture, or the Farming and Forestry Relief and Guarantee Fund as of the application date

This programme facilitates acquisitions of technology and/or equipment for wood processing operations, allowing wood/wood waste processing within individual areas of production – supported investments must particularly lead to lower cost of production, modernisation, quality improvements, and further development of the given business entities.

Investment loan purpose:

• Acquisition of technology and equipment within specified production segments (e.g. lumber drying, solid wood steaming and impregnation, warehouse equipment, etc.)

Loan amount and term:

• Up to CZK 20 million for an unlimited period of time

Beneficiary:

Business entities that:

• Comply with de minimis terms and conditions (pursuant to Commission Regulation (EU) No. 1407/2013 - max. support limited to EUR 200,000)
• Have no outstanding payments to the government and other institutions as of the application date
• Micro, small, medium-sized or larger enterprises
• Operate in the area of:
  - Saw-mill and wood impregnation operations
  - Production of wooden, cork, wicker, and straw products other than furniture
  - Production of wood-based veneers and boards
  - Production of other construction joinery and carpentry products
  - Production of other wooden, cork, wicker, and straw products - with the exception of furniture

Municipalities or voluntary municipality clusters or businesses that:

• Comply with de minimis terms and conditions (pursuant to Commission Regulation (EU) No. 1407/2013 - max. support limited to EUR 200,000)
• Have no outstanding payments to the government and other institutions
• Operate in the area of:
  - Saw-mill and wood impregnation operations
  - Production of wooden, cork, wicker, and straw products other than furniture
  - Production of wood-based veneers and boards
  - Production of other construction joinery and carpentry products
  - Production of other wooden, cork, wicker, and straw products - with the exception of furniture
  - It must be a contributory organisation of a municipality or of a legal entity established by such municipality

Loan purpose:

Acquisition of fixed assets relating to farming produce processing – for the purpose of food or feed

Loan amount and term:

Up to CZK 50 million for an unlimited period of time

Beneficiary:

• Business entities operating in the area of farming produce processing
• Compliance with de minimis terms and conditions (pursuant to Commission Regulation (EU) No. 1407/2013 - max. support limited to EUR 200,000)
• Revenue from farming produce processing must amount to at least 25% of the total revenue of the given entity during the first fiscal period after the application filing or, in case the given entity is engaged in farming produce processing and primary farming production, the farming production revenue amounts to least 25% of the total revenue, whereas the given revenue must be generated for the term and effect of an agreement on provision of support
• No outstanding payments to the government and other institutions as of the application date

It is intended for farmers, forestry, water management, and produce processing businesses.