The EU4Business-EBRD Credit line is a joint initiative of EU and EBRD to help Georgian SMEs finance investments, which enable them to seize the opportunities presented by the Deep and Comprehensive Free Trade Agreement (DCFTA).
The DCFTA agreement was negotiated between the European Union and Georgia and came into effect in 2014. This provides a framework for modernizing Georgia’s trade relations and economic development by opening up markets, harmonizing laws, standards and regulations with EU and setting a path for further reforms in trade-related policies, such as hygiene standards for agricultural and food products and the approximation of regulations for industrial products.
EU and EBRD created the EU4Business-EBRD Credit Line, consisting of loan/leasing finance and cash-back incentives financed by the EU. The initiative is designed to support Georgia’s SMEs and entrepreneurs in aligning their businesses with EU Directives, helping them reach out to new market opportunities by investing in upgrades of their production processes and services.
By investing in upgrades of production processes, SMEs increase their product/service quality, enhance their environmental responsibility and decrease operating costs, as new machinery always consumes less energy and is lower in carbon emissions.
For simple equipment upgrades up to €300,000,
based on our List of Eligible Technologies (LET).
A cash-back incentive of up to 10% applies.
Fast track process for SPS and food safety
for investments up to €300,000.
A cash-back incentive of up to 15% applies.
For SMEs to take full advantage of the DCFTA opportunities and to help them expand into EU markets, they will have to comply with the relevant EU directives. In many cases this means investing into new equipment and technologies to reach compliance with EU Directives.
Knowing what to invest in and financing the required improvements can be a challenge. The EU4Business-EBRD – Credit Line helps SMEs overcome these challenges. The programme consists of:
Affordable – The 10% – 15% cash-back incentive reduces the cost of financing your investment
Flexible – available for any investment that helps your company meet the more stringent EU directives, thereby increasing your market potential and your profitability
Predictable – Financing is available in GEL with tenures of 3 to 5 years
Simple – No stringent eligibility thresholds (e.g. no minimum IRR)
Quality focus – All eligible investments improve the product quality while expanding your market access at home and abroad
Reduced cost base – practically all eligible investments result in reduced energy and resource consumption, lowering your cost base and increasing your competitive advantage
Green image – practically all eligible investments reduce pollutants such as greenhouse gas emissions
Free expert support – Simple procedures combined with free technical advice offered by a team of experts help you pave the way to new markets
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