Establishment of the Small Enterprises Fund of the Republic of Slovenia

Ljubljana, 23 January - Small Enterprises Fund was established today to promote the development of the small business sector. The aim of the fund, having presently some 100 million Tollars at its disposal, is to further the development of the small businesses, stated the President of the Board of Directors of the Fund, Mr. Franc Golja. The Fund is a special financial institution based on the new Law on the Furthering of the Development of the Small Business Sector (defined as an enterprise with less then 125 employees). The funding provided by the Fund is reversible and non-profitable, aimed at financing, interest rate subventions and financial guarantees. The funding will be available through public applications. The investment projects of a value less then 100.000 DEM connected with production activities, tourism and manufacture will be declared as priority projects. The interest rate will be 6%, while the financing will be provided over a period of 6 years for investment projects and over a period of 4 years for investment programmes. A stand-still is included into the financing period. The Fund will be included among the already extensive budgetary expenses. Last year budget provided 500 million Tollars for the Fund, while this year's estimate is 250 million. As there are currently only 100 million Tollars in the Fund, the Board of Directors will ask the Government for an additional 800 million Tollars. The Board of Directors of the Fund has seven members, of varying political provenience, while the Supervision Board has three members. The Board of Directors embraced today a statute of the Fund. The Ministry of Small Businesses offered a bid for the potential applicants of the Fund already last Autumn. Of 408 applicants only 287 complied with the conditions. The outcome of the bid will be known at the end of January or in the beginning of February, but it is already clear that the successful applicants will be few in number. To meet the demands of all the applicants the Fund would have to dispose with a sum of 2 billion Tollars.