18.07.2024
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Financing of investments covered by a subsidy
How to ensure comprehensive financing of investments covered by EU subsidies? The solution is Bank Millennium's proposal to combine a bridge loan with a subsidy with a long-term investment loan. A bridge loan allows companies to finance the eligible costs of the investment in the part covered by the subsidy and is granted in an amount equal to its amount. The remaining part of the investment will be covered by a long-term investment loan. If the subject of financing concerns a so-called green project, i.e. e.g. energy transformation of the company, reduction of material consumption of production, the company can count on preferential terms from Bank Millennium – no commission for granting financing and a loan period of up to 15 years.
- At Bank Millenium, we will comprehensively support the implementation of investment projects. A bridge loan will be used to finance eligible costs covered by the subsidy, and a long-term investment loan will be used to finance eligible costs not covered by the subsidy as well as non-eligible costs, including VAT. Our sales network is prepared to support customers in the implementation of inter alia investments related to energy efficiency and circularity. In addition, entrepreneurs can count on the help of EU experts who will indicate subsidy programmes that are worth using to increase the financial efficiency of the investment – says Anna Gregorczyk, Directress of the Corporate Banking Marketing Department at Bank Millennium.
In a comprehensive model of financing an investment for which an application has been submitted under one of the aid programmes, the main source of funds will be an investment loan. A supplementary source is a bridge loan, in the case of which the subsidy is treated as a source of loan repayment. Such a model provides the company with comprehensive support at every stage of the project.
The repayment schedule of the bridge loan is adjusted to the planned dates of receipt of the subsidy, based on the schedule of works and expenditures of the project. On the other hand, the repayment of an investment loan is made in monthly, three-month or semi-annual instalments.
In the case of a loan covered by green financing (the purpose of which has been defined by Bank Millennium as green), the origination fee is 0%.
The Bank Millennium bridge loan with subsidy finances projects implemented from EU funds for 2021–2027. At the same time, the Bank's offer is also important support for companies that may become direct or indirect beneficiaries of funds from the National Recovery Plan.