Croatia increases micro loan limit to 50,000 euros for small businesses

The Croatian government, through the HAMAG-BICRO Board of Directors, has updated the ‘Micro Loans for Growth and Inclusion’ program to provide increased financial support to micro and small entrepreneurs. The maximum loan amount has been doubled from 25,000 euros to 50,000 euros, while the minimum remains at 1,000 euros.

Funded by the European Social Fund Plus (ESF+), the program supports investments in tangible and intangible assets, with a limit of 30 percent of the total approved amount for working capital. Repayment terms allow for up to five years, including a possible one-year grace period. Interest rates are set by reducing the basic national rate by 2.5 percentage points, with a minimum floor of 0.5 percent.

A notable feature of the updated program is the possibility of a principal write-off of up to 30 percent, provided specific criteria are met. Additionally, the definition of ‘startup entrepreneurs’ has been liberalized. Previously, individuals with more than 30 percent ownership in another entity often lost startup status; the new rules focus on the cumulative duration of previous ownership, which must not exceed 36 months.