This low-interest loan supports Albanian small and medium-sized enterprises in order to develop them and will be used to finance SME projects, for investments, business expansions or technology improvements.
The SME Loan provides for the provision of a more favourable interest rate and repayment period compared to those in the market for SMEs that want to purchase goods and services made in Italy.

Who can apply?

All entities: natural or legal persons, that own or represent micro, small and medium (SMEs) enterprises and that currently operate an entrepreneurial activity or that would like to start-up an activity in Albania.

Eligibility criteria For SMEs: • The company is registered in Albania; • Not less than 51% of the company's capital is under the ownership of an Albanian citizen; • The annual turnover is lower than 10 million Euro; • The number of employees is lower than 250.

Loan criteria for SMEs The scope of the loan: • At least 70% of loan funds should be used to purchase equipment, machineries, technologies, technical assistance, industrial licenses, maintenance, spare parts and raw materials made in Italy; • Maximum 10% of the loan funds can be used to purchase raw materials relevant to the principal investment; • Maximum 30% of the loan funds can be used to cover local costs or from other neighbouring developing countries.

Loan criteria for small projects Project value: • From 15,000 Euro to 50,000 Euro. Target group: • Newly established micro, small and medium enterprises (Start-up) or existing ones. The scope of the loan: • At least 40% of the loan funds should be used to purchase equipment, machineries, technologies, technical assistance, industrial licenses, maintenance, spare parts and raw materials made in Italy; • Maximum 60% of the loan funds can be used to cover local costs or from other neighbouring developing countries.

What cannot be financed? • Local taxes, custom duties, VAT; • Investments in the free time and entertainment sector (gambling, bars and restaurants), real estate, arms, drugs and alcoholics, tobacco and by-products, production of products forbidden by the European Union countries for import and export as per the international agreements.

Which are the loan criteria? Repayment period: • From 3 to 8 years. Grace period:: • From 1 to 2 years (only the interest rate shall be paid during this period) Interest rate applied: • A maximum of 3% annual interest for loans in Euro; • A maximum of 4% annual interest for loans in ALL;

Which SMEs, Projects and Sectors are a priority to the Programme? Priority micro, small and medium (SME) enterprises: • Information and Communication Technology enterprises; • Enterprises owned (at least 51%) or administered by women entrepreneurs; • Manufacturing enterprises; • Exporting enterprises (exporting at least 50% of the total sales); • Newly established enterprises by Albanian immigrants residing in Italy. • Enterprises falling in industrial areas/parks; Priority projects/sectors: • Investment projects in Information and Communication Technology; • Projects in agriculture and agri-food sector; • Projects that conduct clean production with a low impact on the environment; • Projects that generate new jobs; • Projects for the generation of energy from renewable resources; • Projects that promote energy efficiency conservation; • Projects located in less developed areas of the country (outside Tirana-Durres area)

What are the benefits of priority projects? A project deemed as a priority shall benefit: • 2 years of grace period, (only interest shall be paid); deferral principal; • A guarantee from the Guarantee Fund that will cover up to 60% of the required loan amount.