Regional financial tools (the Podkarpackie Region)

The Podkarpacki Development Fund

In 2017 the company Podkarpacki Fundusz Rozwoju Sp. z o.o [Podkarpacki Development Fund Limited, abbreviated as PDF] was established, and 100% of shares in the company are heldby the Podkarpackie Region. The newly established company is aimed at supporting SME-s in terms of external financing sources, including companies having difficulty in accessing commercial financing.

In September 2017, under an open tender employing the in-house procedure, the agreement on entrusting public tasks was signed, which provides the basis for the management by the Company of financial instrument resources withdrawn from 2007-2013 perspective by granting loans, guarantees and other products supporting SMEs in the Podkarpackie Region. It is assumed that PFR Sp. z o.o. will receive 120 million PLN for managing, and these resources will be allocated successively after withdrawing the resources from financial instruments in 2007-2013 perspective. The first tranche at the amount of 10.5 million PLN was transferred after signing the agreement in September 2017.

Basis for the investment strategy

The signing of the entrustment agreement was accompanied by the adaptation of PDF strategy which makes use of analytical conclusions in the following reports:

• “Ex-ante evaluation of financing engineering instruments within the framework of Business Environment Organizations for the Podkarpackie Region in 2014-2020”,
• Catching-up Regions „Financial instruments – the Podkarpackie Region – Investment strategy on financial instruments created on the basis of support resources returned from the financial engineering instruments of Business Environment Organizations for the Podkarpackie Region in 2007-2013” 

and the conclusions resulting from the general analysis of micro-, small- and medium-sized enterprises in the Podkarpackie Region.

Offer of the Podkarpackie Development Fund (PFR)

In accordance with the approved strategy, Fundusz Rozwoju Sp. z o. o. [the Podkarpacki Development Fund limited liability company] offers the following resources transferred for managing by the Management Board of the Podkarpackie Region to SME sector:

• Revolving loans at the amount of 1,000-250,000 PLN for financing 12 months, which can be renowned in the next year,
• Revolving loans at the amount of 1,500-500,000 PLN for financing up to the period of 5 years, which can be repaid monthly,
• Guarantees for credits, loans, and bank guarantees, the guaranteed amount of 5,000 PLN up the 1 million PLN for the period up to 10 years,
• Factoring, a package for settling invoices 100,000 PLN, in the period up to 1 year.

Possible financing for granting guaranties for companies that apply for co-financing in the form of grants from European Funds for their investment is proposed.