Family businesses in Serbia’s production and processing sectors can now benefit from credit and grant support programs aimed at boosting their growth. A total of 500 million dinars have been allocated by the state for this initiative, with funds now available through the Development Fund of the Republic of Serbia.
Credit support program
The credit support program offers favorable loans for family businesses, allowing them to apply for loans of up to 5 million dinars. These loans can be repaid over a period of up to 60 months, including a 12-month grace period. The annual interest rates are 2.5% with a currency clause, or 1.5% per year if the borrower provides a bank guarantee. Additionally, there is no processing fee for the loan applications, and repayments are flexible, offering monthly or quarterly options to help businesses manage their budgets more effectively.
Non-reimbursable financial support
Alongside the credit program, a non-reimbursable financial support program has been introduced, offering grants of up to 50% of the total investment, with a maximum of 2 million dinars. The remaining funds for the investment can be covered through personal savings, a bank loan, or the credit program from the Development Fund. Combining both support programs allows businesses to reduce investment costs significantly.
Eligibility criteria
Micro and small family businesses and entrepreneurs registered by December 31, 2022, and engaged in activities within the processing industry (sector C) are eligible for financial support. There are additional conditions related to family ownership and employment:
- Entrepreneurs must employ at least one family member for an indefinite period.
- Micro and small businesses must employ at least one family member, and the founder or legal representative must also be a family member. If the founder and the legal representative are different, the legal representative must be a family member.
Family members are defined as individuals related by blood up to the second degree, including parents, children, siblings, grandparents, grandchildren, as well as spouses, adoptive parents, and adoptees.
Eligible investments
The financial support can be used for a variety of investments, including:
- Purchase of machinery, equipment, tools, new computer equipment, and software licenses
- Vehicles for business purposes
- Energy-efficient equipment and equipment that enhances environmental protection
- Adaptation and maintenance of business premises
- Working capital (up to 30% of the total loan amount)
However, the funds cannot be used for expenses incurred prior to submitting the application or for activities already completed.
Application process and deadline
The public call for fund allocation has been posted on the Development Fund’s website, and applications are open until the funds are depleted, or no later than June 30, 2025. Companies are advised to act quickly, as experience shows that such funds tend to be used up rapidly, especially when the terms are this favorable.
