The Sarajevo Canton line allows businessmen to get financing at a rate of zero percent at BBI Bank, with a subsidy from the Ministry of Economy of the Sarajevo Canton. The applicant for financing with subsidization of the profit margin can exercise the right to this financing only with one bank that has been chosen by the Decision of the Sarajevo Canton Government.
The right to participate is available to small business entities – individuals and legal entities, who:
Permanently perform activities permitted by law for the purpose of generating income or profit in the manner prescribed by the Law on the Promotion of Small Business Development;
They are based in Sarajevo Canton
On the basis of current credit indebtedness, they are classified in Stage 1 (Stage 2 category is also allowed, if it was not caused by the client’s actual delay in repaying obligations);
They operate liquidly and have a satisfactory credit rating;
Based on the notification of the Statistics Service on the classification of activities according to the Classification of Activities of the KD of BiH 2010 (“Official Gazette of BiH”, number 47/10), they have registered and actively perform basic activities within the areas of activities specified in the Public Invitation.
Priority in realizing the right to incentive funding is given to those entities that state in the submitted application for funding that they will provide new employment.
Funds in this financing line cannot be used to finance state institutions, public companies, non-profit foundations, associations and organizations, as well as all types of financial institutions, including other banks, and the same funds cannot be used for the purpose of redeeming credit obligations for previously taken loans from of other banks, as well as for other activities not listed in the 2023 Public Call.
Funding incentives are intended for subjects to ensure current liquidity, more productive operations and growth of economic activities, procurement of fixed assets and investments (long-term financing) and financing for permanent working capital. The beneficiary of the funds is obliged to use the incentive financing means in the following way: to spend at least 30% of these financing funds for fixed assets, and a maximum of 70% of these financing funds for working capital and maintaining current liquidity. The user of the funds is obliged to keep at least 80% of the number of employees he had on the day of submitting the request for financing.
The beneficiary of the funds is obliged to provide new employment that he stated in the request for financing, if he thereby had priority in the process of realizing the right to incentive funding.
The user of the funds is obliged to submit a request for payment of the subsidy together with the prescribed supporting documentation.
The basic criteria for selecting the beneficiary of the financing line are:
Type of activity (production, service and production-service);
Intended use of funds;
Number of employees;
Increasing the number of employees;
More productive business
Growth of economic activities i
Formally – legally correct documents for securing financing.
Approved financing for one Beneficiary is limited to 2,000,000.00 KM, with a maximum repayment period depending on the type and amount of the loan request (financing request) of up to 84 months, which period does not include the agreed grace period of nine months.
The amount of the subsidized profit rate is 0% (2.88% before the subsidy).
The application processing fee is 0.00%.
Special conditions for the payment of the subsidy are: orderly payment of all obligations for taxes and contributions, retention of at least 80% of the number of employees in relation to the date of submission of the application for financing, provision of new employment specified in the application for financing, if the priority in realizing the right to incentive funds has been achieved and the orderly settlement of due obligations for financing which is the responsibility of the bank.
Subsidies are calculated and paid out quarterly, based on previously performed monitoring
When submitting a request for financing, the applicant of this request is obliged to submit a statement that this request is the only request that he submitted in the line of financing, that is, that he did not submit the request for financing in this line of financing to any other bank selected by the Decision of the Government of KS from Article 2 of the Public calls.
Request defining the purpose, amount and repayment term of financing, expected effects in employment, according to the business plan;
Decision on registration in the court register with all amendments;
Current extract from the court register not older than 90 days;
Statute and Decision on establishment of the company;
Tax registration certificate from the Tax Administration – ID number;
Certificate of registration of value added tax payer – VAT number;
Notification of the competent Statistics Service on the classification of legal entities according to KD 2010 activities;
Certificate of the Tax Administration on settled direct taxes with the mandatory List of insured persons for the obligee on the date of submission of the application for the issuance of the relevant certificate, not older than 30 days from the date of submission of the application for financing approval;
Certificate from the Administration for Indirect Taxation on settled indirect taxes, not older than 30 days;
Copy of identity card and CIPS for persons authorized to represent;
Related party statement;
Consent to check the Central Credit Register (CRK);
External auditor’s report (only for joint-stock companies);
Business plan, projected balance sheets and cash flows for the financing repayment period;
Balance sheet and income statement for the previous two years, and preliminary financial indicators for the current period;
Documentation for securing financing and instruments for securing financing (collateral) determined by the Bank, in accordance with its business policy and depending on the client’s creditworthiness; and
At the request of the Bank and other documents in accordance with the internal acts of the Bank.
Duly completed and certified Application defining the purpose, amount and repayment term of financing;
Proof of the intended use of the funding (provisional invoice, invoice, sales contract, certificate of the remaining debt);
The decision of the competent municipal authority for the performance of activities;
A copy of the record of deposited signatures of persons authorized for representation;
Specification on determining income from self-employment for the last two years;
Certificate of tax and VAT registration (if the activity is mandatory);
Notification of the competent Statistical Service on the classification of trades according to KD 2010 activities;
Photocopy of LK – self-employed owner;
Photocopy of CIPS certificate – self-employed owner;
Specification with payment of wages – Form 2001 and 2002;
Certificate from the Tax Administration on settled direct taxes, not older than 30 days;
Certificate from the Indirect Taxation Administration on settled indirect taxes, not older than 30 days (if the activity is in the VAT system);
The corresponding document proving that the owner of the independent activity has real estate in his possession (apartment, house, land, business premises); appropriate document proving ownership – ZK extract, real estate certificate, title certificate (only for those areas where land registers have not been established) and
At the request of the Bank and other documents in accordance with the internal acts of the Bank.
The users of financing means are obliged to provide certain/prescribed type of collateral as financing security in this financing line. The type of collateral will depend on the creditworthiness of the Beneficiary, the amount of financing and other parameters determined by BBI.
Common types of collateral that BBI Bank accepts are:
Lien on real estate;
Lien on equipment;
Bills of business entity;
Personal promissory notes of the owner of a business or trade;
Agreement on assignment;
Insurance policy linked in favor of BBI Bank;
Other.
The receipt of financing requests, the processing process and approval of financing from the funds of this financing line will be carried out by BBI Bank, within a period of no longer than 30 days from the date of the submitted financing request.
Submission of requests according to the conditions of this public call starts from the day of publication in the public media and lasts until the funds are used up, and no later than 31 December 2023. years.
With the consent of the Ministry, BBI concludes the contract with the Beneficiary of the funds, within 30 days from the date of the submitted request.
Requests for financing with the necessary documentation are submitted in sealed envelopes marked “Request for financing from the line of the Canton of Sarajevo” personally to the protocol or by registered mail, to the address:
BOSNA BANK INTERNATIONAL d.d. Sarajevo, Trg djece Sarajeva b.b., 71000 Sarajevo or by e-mail: linijakantonasarajevo@bbi.ba
The receipt of requests, the process of analysis, processing and approval for financing from the funds of the financial line will be carried out in accordance with the regular procedures of BBI Bank. Financing agreements with the beneficiaries of funds will be concluded by BOSNA BANK INTERNATIONAL d.d. Sarajevo. The contract will define the mutual obligations and rights of the contracting parties, as well as the way of using the financing. Monitoring by BBI Bank on a quarterly basis is mandatory for all financing. Monitoring is carried out until the end of the next quarter for the previous quarter.
The user of the funds is obliged to submit and regularly submit all the necessary documentation to BBI Bank for the purpose of proof of fulfillment of the conditions of the contract concluded between BBI Bank and the User of funds for exercising the right to a subsidized profit rate.
The beneficiary of the funds is obliged to submit the “Report on the Implementation of the Allocated Funds” to BBI Bank and all accompanying/necessary documentation, through which it will be possible to determine the proper execution of obligations, including the intended use of financing funds, the proper settlement of tax payment obligations and proof of the number of employees ( retention of at least 80% of the number of employees in relation to the date of submission of the application or increase in the number of employees).
In the process of submitting a request based on a public call, BBI does not bear any costs to the participants, and reserves the right to completely reject the request in case of justification. Submitted documentation will not be returned.
Additional information before submitting the request during the public call can be obtained by calling 033 275 507 and 033 275 289 or email: linijakantonasarajevo@bbi.ba
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