A loan without a mortgage is no exception - what's changing for entrepreneurs

• 13.01.2026.
• News, Finances

In the first article of the year, Ivica Žuro for čarter.hr opens a topic that will be more than relevant for many entrepreneurs. New credit rules, lower collateral requirements and entirely new instruments introduced by HAMAG-BICRO and HBOR create opportunities for entrepreneurs who are planning investments but do not want (or cannot) tie up real estate.

New year – a new credit programme, meaning conditionally speaking it can also go without real estate.

The Croatian Agency for SMEs, Innovations and Investments (HAMAG-BICRO) concluded a cooperation agreement with nine banks at the end of 2025, thereby launching the implementation of the financial instrument EFRR Portfolio Guarantees.

These are 9 banks that are small in terms of assets, yet have their role in the market, the niches they operate in, their defined risk policies, and some of them have exceeded the largest domestic banks in financing volumes.

We will not list them by name nor advertise them for free, but we have generally cooperated and continue to cooperate with them, and some of them proved themselves by attempting to refinance loans for the tourism sector during the pandemic when the original lenders backed out.

And now they have clients in that sector. They took a risk and they profited.

What the EFRR portfolio guarantee actually provides

Let us return to the financial instrument called EFRR Portfolio Guarantees, which is implemented under the Competitiveness and Cohesion Programme 2021 to 2027, that is, the current EU financial envelope. 
Its aim is to enable small and medium-sized entrepreneurs easier access to more favourable loans through a mandatory reduction of the interest rate, while reducing the risk for banks and lowering collateral requirements.

Through EFRR Portfolio Guarantees, HAMAG-BICRO guarantees banks up to 80 percent of the loan principal and regular interest, with the maximum amount of an individual guarantee being 300 thousand euros, and the duration can be up to 15 years.

VAT is of course not an eligible cost.

The guarantees refer to investment loans and working capital loans, with a one-time risk premium of 0.5 percent for investment loans and one percent for working capital loans.

Entrepreneurs do not submit requests directly to HAMAG-BICRO, but to commercial banks included in the programme, which independently decide on lending according to their own procedures and, in line with their risk assessment, decide whether to use the portfolio guarantee as collateral for the same. The validity period of the financial instrument lasts until the end of 2029, or until the available funds are used up.

How much can actually be borrowed - and what banks expect

Pay attention to the fact that the maximum guarantee amount of 300,000.00 euros or a maximum of 80% of the loan principal does not mean that the loan amount is limited to 375,000.00 euros.

It can certainly be higher, and then it is up to the commercial bank to determine how it will secure itself against the inability to repay the amount exceeding the stated maximum. Keep in mind that banks will, as a rule, in the case of smaller clients, require participation in the investment of at least 25% and very often 30% or more. Especially if it is a first investment and the investor has not been operating for longer than 5 years.

However, regardless of how much you borrow and what rating you have, one thing is unavoidable.

Before starting the entire process, it is necessary to have a realistic, precise and well thought out business plan, which is the basis for approving a future loan along with other acceptable indicators.

 

A business plan that succeeds only when it is truly good

Count on the fact that you must present in it:

• Description of the business model and past operations – excellent if it has been positive for years in a row, acceptable if there is an explanation for a specific situation, and even better if the current year is good
• Macro and micro aspects of operations - with sector analysis and factors that affect the business
• Overview of the procurement and sales market and competition
• Technical analysis of the investment itself – what is being invested in, in what amount, which (if applicable) official documentation from institutions relates to the subject of the investment, where and from whom it is procured, who the contractor is, what the item being procured is used for and other questions
• Financial plan – cost breakdown and structure of the investment, that is, how much comes from which source
• Projection of income and expenses and indicators – how the investment will generate revenue and what costs are to be expected, as well as the overall viability, proving that not only can the principal and interest be repaid and costs covered, but profit can also be achieved
• Risk analysis or the penalisation of the projection – what if things do not go according to plan, that is, if revenues are lower and costs higher

Without detailed elaboration, even the best possible idea will not pass.

For serious investments – the new HBOR financing model

The same document is a conditio sine qua non for production financing carried out by HBOR itself, in the amount of 100,000.00 to 3,000,000.00 euros.

Through the financial instrument Loans for the Modernisation of Production, financially sustainable investments are financed that contribute to enhancing the productivity and competitiveness of micro, small and medium-sized enterprises.

Eligible investments include tangible and intangible assets related to:

• the establishment of a new business unit
• the expansion of the capacity of an existing business unit
• the diversification of production within a business unit into products that the respective business unit has not previously produced
• a substantial change in the overall production process of an existing business unit

Eligible investments may also include the following activities if they are related to “initial investment” under Article 2, point 49 of Regulation (EU) No. 651/2014:

• strengthening the digital skills and training of employees for the use of acquired solutions (including e-learning platforms)
• the implementation of new or reconstruction of existing accessibility elements (measures in accordance with the Technical Regulation on Ensuring the Accessibility of Buildings for Persons with Disabilities and Reduced Mobility (OG 12/2023))
• investments in renewable energy sources

Depending on the conditions, the loan beneficiary may be granted a capital rebate, that is, the write-off of part of the loan principal of up to 50%.

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