About Co-Financing (Mezzanine) Loans

An additional loan used as entrepreneur’s co-financing for a bank loan in cases when the bank requires greater participation than the entrepreneur is able to provide.

A co-financing (mezzanine) loan can be used to cover investment expenses related to the diversification of products with new ones, extension of the capacity or a fundamental change in the overall production process, setting-up of a new establishment or extension of the capacity of an existing establishment.
The maximum amount of a co-financing loan is up to EUR 5 mln. and it cannot exceed 45% of the total project costs (for loans from EUR 2 mln. to EUR 5 mln., the maximum amount cannot exceed 35% of the total projects costs). The minimum amount – EUR 50,000.
The maturity of a co-financing loan is up to 15 years for investment projects related to the acquisition, construction or reconstruction of real estate. For other investment projects, maturity is up to 10 years.
Co-financing loan has a high credit risk and it is subordinated to the bank loan and low-ranking security (pledge) in relation to the bank.
Co-financing loan is disbursed as regional aid in accordance with Commission Regulation (EU) No. 651/2014 of 17 June 2014.