A Modern Alternative to Grants? Financial Instruments!

Are you looking for smart financing to grow your business? Financial instruments are a form of public support offering interest-free loans, guarantees for commercial loans, and equity investments — all with minimal administration.

Why use financial instruments?

The main advantages of financial instruments include:

  • Interest-free loans or significantly reduced interest rates.
  • Option to defer repayments until the investment starts to generate revenues.
  • No need to run a tender procedure for supplies and services.
  • Possibility to combine with financial contributions and grants.
  • Minimal administration — negotiations take place directly with the bank or financial institution.
  • Quick processing compared to traditional grants.

Currently available opportunities

Several key programmes are currently available, administered primarily by the National Development Bank and the State Environmental Fund:

Expansion Program – loans

The Expansion program is designed to help launch or grow a business and create new jobs. Applicants can obtain an interest-free preferential loan of CZK 1 to 100 million, covering up to 50% of eligible expenditure. The remaining portion must be covered by a partner loan (at least 20%) or own resources.

Transformation Guarantee Programme

This programme is designed exclusively for small and medium-sized enterprises in the Karlovy Vary, Ústí nad Labem, and Moravian-Silesian regions. Its goal is to support economic growth in regions affected by the decline of heavy industry and to ensure a transition to a more sustainable economy. The programme offers a guarantee of up to 80% with no fees for a commercial loan in the range of CZK 0.5–40 million.

Circular Economy Programme

This program targets companies engaged in the circular economy or introducing innovations in this area. It offers a financial guarantee of 50% of the principal of a commercial loan combined with a grant component, while the amount of the guaranteed loan can reach up to 90% of the total eligible costs.

National Guarantee Programme

This programme supports the efficient and strategic development of businesses through a guarantee for commercial loans. The National Development Bank can provide a guarantee of up to 70% of the principal of the guaranteed loan.

Who can apply?

Suitable support is available for entrepreneurs from small, medium, and large companies across the Czech Republic, including Prague.

What can be financed?

  • Acquisition of technological equipment, machinery, and tools
  • Purchase of electric vehicles
  • Acquisition, construction, and renovation of buildings
  • Acquisition of software, programmes, licences, servers, and other IT equipment
  • Acquisition of inventory and materials for efficient warehouse management
  • Coverage of operating expenses such as wages, rent, and energy costs

We will help you choose the right financial instrument for your project and stand by you throughout the entire process — from assessing the suitability of individual programmes, through preparing the application, to communicating with the bank and the support provider.