CSOB – Programme for Co-financing Projects Supported from EU Funds
After the accession of the Czech Republic to the EU, many entities gained the possibility of drawing subsidies from EU structural funds, presenting an interesting opportunity for development in the 2007 to 2013 period.
The conditions of these subsidy programmes change frequently and it is difficult to keep abreast of them. We will be happy to advise you free of charge as to which programmes you can take advantage of and the chances of obtaining a subsidy for your specific project. CSOB has already been successfully involved with subsidies for many years and has successfully helped a wide range of clients obtain them.
Our services include the complete preparation and execution of subsidy applications for clients, mainly on the “success fee” principle, meaning that payment for the service is only required if the application is successful. We were one of the first banks in the Czech Republic to develop a special scheme for financing such projects with the use of subsidies, which includes not only the loans themselves, but also the standby loan commitments that state authorities require when a subsidy application is submitted.
Get acquainted
On 15 November 2006, the government of the Czech Republic approved new operational programmes for the 2007 to 2013 period, presenting new opportunities for many entities to draw from EU funds. The annual allocation in the new period is approximately four times higher than in the 2004 to 2006 period. EU funds are one of the main structural policy instruments used by the European Union. In the 2007 to 2013 period, the Czech Republic is entitled to draw subsidies from these funds totalling EUR 26.7 billion. CSOB has been involved in the area of EU funds right from the beginning and in this short time has provided financing and consultation for several hundred of its clients.
The financial resources from the EU are provided through the following operational programmes:
- OP Enterprises and Innovation
- OP Research and Development for Innovation
- OP Human Resources and Employment
- OP Education for Competitiveness
- OP Environment
- OP Transport
- Integrated Operational Programme
- Regional Operational Programmes (a total of 7 regional programmes)
- OP Technical Assistance
- OP Prague Competitiveness
- OP Prague Adaptability
- OP Cross-Border Cooperation
- OP Interregional Cooperation
- OP Supranational Cooperation
Projects must fulfil the criteria stipulated in the implementation regulations of EU Member States and EU directives:
- One of the frequently compulsory annexes to an application for a subsidy from EU funds is proof that the applicant has secured complete financing for its project (as the applicant must provide part of the project costs from its own resources, or from a loan).
An important fact is that, for the majority of programmes, subsidies from EU funds are paid out retroactively, after the completion of the project or a phase of it. For this reason we have prepared the following loan products for you:
- Standby loan commitments;
- Loans for the pre-financing of a subsidy and for the co-financing of a project.
Standby loan commitments:
- One of the basic prerequisites for the approval of a project is documents proving that financing for the project in question has been secured, and these must be submitted together with the application for a subsidy from EU funds;
- We provide our clients (the final beneficiaries of the subsidy) with a standby loan commitment for the financing of the project.
Loans for the pre-financing of a subsidy and for the co-financing of a project:
- A targeted short-term, medium-term, or long-term loan;
- The purpose of the loan:
- to cover the eligible costs of the project that will subsequently be reimbursed from subsidies from EU funds or the state budget;
- and/or to cover the eligible costs of the project that are not covered, either by the subsidy or by the client’s own resources;
- Drawing on the basis of submitted documents (invoices) and in accordance with the binding parameters of the project;
- Payment is performed from two sources:
- from subsidies from EU funds or the state budget (in the form of an extraordinary payment);
- and/or from the income of the debtor (according to a repayment calendar);
- Securing standard security instruments, depending on the type of the project and the type and character of the loan transaction;
- Interest rate:
- variable and tied to PRIBOR during the drawing period;
- after the final repayment from the subsidy from EU funds or from the state budget, we can also set a fixed interest rate.
Conditions of provision
The final beneficiaries of support are:
- Legal entities (residents), state and state-subsidised organisations, non-governmental non-profit organisations, and also large corporations for selected measures;
- Natural persons acting in the capacity of entrepreneurs (residents);
- Municipalities.
The range of documents required for a standby loan commitment application (or a loan) is standardised, the same as for the provision of loan. In addition, however, you must submit:
- A feasibility study (if this is required for approval of the subsidy) together with the project;
- Before the provision of the loan, a financing contract concluded between the subsidy applicant (CSOB client) and the relevant state authority, or the decision on the provision of a subsidy;
- The submission of documents relating to the performance of tenders for project contractors, if tenders are compulsory;
- Fulfilment of other conditions under which the standby loan commitment was issued.
CSOB EU Centre advisory services
CSOB has been involved with subsidies right from the initial launch of the structural funds in 2004. The CSOB EU Centre has an experienced team of experts with deep knowledge of both the issues as well as the system of support. The CSOB EU Centre specialists focus on the preparation of larger investment projects and have had practical experience with dozens of such projects. With a success rate exceeding 97 % for the projects they have prepared, the CSOB EU Centre experts have obtained subsidies exceeding CZK 5,64 billion for their clients.
We can offer you the following services:
Subsidy audit
- A free-of-charge preliminary evaluation of the planned project, from the perspective of the use of a subsidy from:
- EU structural funds;
- National programmes;
- Designed for small and medium-sized enterprises, large corporations, towns and municipalities;
- For subsidy audit please contact the CSOB EU Center specialists mentioned below.
Subsidy application preparation
- CSOB offers the preparation of a subsidy application for clients whose project has been found to be suitable, as the result of a subsidy audit for the allocation of a subsidy from EU funds or a different programme. This involves the comprehensive preparation of the subsidy application (including all the essential annexes such as a feasibility study, cost-benefit analyses and so on).
- In the majority of cases, the application is prepared on a “success fee” basis, meaning that the fee for the preparation and execution of the subsidy application is only charged if the application in question is approved.
- In the case of larger investment projects, the subsidy application is prepared directly by the CSOB EU Centre. These are usually projects for the manufacturing industry, the production and distribution of heat and electricity, and investments by foreign investors in the Czech Republic. The value of the subsidies secured by the CSOB EU Centre specialists for CSOB clients exceeded CZK 5,64 billion, and the success rate for applications prepared in this way exceeds 97 %.