Promoting small and medium-sized enterprises with equity and debt ...

www.podjetniskisklad.siFinancial Encouragements 2010 - 2013

The Slovene Enterprise Fund (hereinafter: the Fund) is a public financial institution from the Republic of Slovenia, foundedfor the purpose of improving access to financial means for various business-developing micro, small and medium-sizedcompanies (hereinafter: SME) the Republic of Slovenia.The Public Fund of the Republic of Slovenia for EntrepreneurshipShortened name: Slovene Enterprise FundAddress:Trubarjeva 11, MariborTel.: +386 2 234 12 60Fax: +386 2 234 12 82Basic results:• The ammount of earmarked capital on the date 31 December 2008: 53.025.648 EUR• The number of supported projects in the period 2000 - 2009: 3.265 projects• The amount of supported projects in the period 2000 - 2009: 399,81 mio EUR, of which• start up’s: 418• financial means for the start up’s: 28,6 mio EURThe supported SMEs have created:• 9.436 new job positions or 2,89 new job positions per company,• a 10% annual increase in added value per employee.

THE FUND'S VISIONThe Fund's vision is to remain an efficient national financial institution withestablished financial engineering, which will offer adequate financial solutionsfor development & business projects in the entrepreneurial sector of Sloveniathrough three financial lines including supply of suitable financial instruments.GUARANTEES - CREDITSGRANTSEQUITY FINANCINGSLOVENE ENTERPRISE FUND2010 - 2013financiallinesguarantee - credit line SME2010 - 2013grant line SME2010 - 2013equity financeline SME2010 - 2013private venture capitalcompanies - PVCCfinancialinstrumentsguarantees fortehnologyprojectsguaranteesfor newbusinessmicroguaranteesdevelopmentguaranteescounter-guaranteesfor regionalguaranteesschemesgrants forstart-upsmezzanineinvestmentcapitalventurecapitalinvestmentfinalbeneficiariesparticipatingbankscreditguaranteeregionalguarantees schemesguaranteeSMESME SME SME SMESME SMESME SME SMESMESME SME SMESME SME SMESME SME SME SME SMESME SME SME SME SMESMESME SME SMESMESMESME SME SME SME SME SME SME SMESMESMEbankscreditgrantmezzaninecapitalventurecapitalSME SME SMESME SME SME SMESMESME SME SME1

Bank Loan Guarantee Line for SMEsThe bank loan guarantee line is a financial engineering model offeringcombination of different financial sources and multiplication of such sources as aresult of financial leverage. Under the bank loan guarantee line, the Fund offersdifferent forms of guarantees as collateral for bank loans intended for financingdevelopment investments and current operations of SMEs in Slovenia, namely:1. CLASSICAL GUARANTEES:• Development guarantees as collateral for bank loans intended forfinancing development & expansion investments,• Micro guarantees intended as collateral for bank loans for workingcapital,• Guarantees for new business as collateral for bank loans taken byenterprises registered less than 42 months.2. GUARANTEES FOR TECHNOLOGICAL PROJECTSGuarantees for technological projects are intended as collateral for bank loanstaken by enterprises cooperating closely with knowledge-based institutionsand transferring knowledge, new technologies and development processes intogrowing, market-oriented undertakings.loans collateralised by the Fund's guarantee represent also a cheaper source forenterprises.HOW DOES IT WORK:The enterprise shall visit one of the participating banks (the list of banks involvedshall be published in individual tenders) and apply for a loan indicating that theloan would be collateralised by the Fund’s guarantee. Upon a positive decisionof the bank, the enterprise shall submit an application to the Fund’s publictender. In case of a positive assessment, the Fund shall provide the enterprisewith 60 % to 80 % guarantee to collateralise the above-mentioned loan, and alower interest rate for the loan.GUARANTEES - CREDITSSLOVENE ENTERPRISE FUND2010 - 20133. COUNTER - GUARANTEES FOR REGIONAL GUARANTEE SCHEMESCounter - guarantees for regional guarantee schemes provide support forregional guarantee schemes operating in Slovenia and providing guarantees ascollateral for smaller bank loans taken by SMEs from their regions. The Funduses this product to ensure multiplication and linking of financial sources also atregional level, while ensuring also a uniform support in provision of favourablefinancial sources for SMEs in individual regions of Slovenia.AIM:The bank loan guarantee line is oriented in supporting the developmentinvestments aiming at ensuring faster growth of an enterprise, creating highervalue added per employee, replacing low value-added jobs by high value-addedones, and providing for successful transfer of development ideas to successfulmarket-oriented undertakings. Through approval of guarantees to collateralisebank loans and subsidized interest rates, the Fund eases borrowing by SMEs,as it takes the risk, improving thus financial standing of SMEs with banks, whilefinanciallinesfinancialinstrumentsfinalbeneficiariesguarantees fortehnologyprojectsguaranteesfor newbusinessparticipatingbankscreditguarantee - credit line SME2010 - 2013microguaranteesguaranteedevelopmentguaranteescounter-guaranteesfor regionalguaranteesschemesregionalguarantees schemesguaranteebanksSMESME SME SME SMESME SMESME SME SMESMESME SME SMESME SME SMESME SME SMESMESMESME SMESME SME SME SME SMEcredit2

Grant Line for SMEsUnder the grant line, the Fund offers grantsfor enterprise start-ups, where grants aim atencouraging establishment and launching ofinnovative and technology-oriented enterprises.AIM:Through this line, the Fund would like tosupport the target group of enterprises with ahigh development potential and at the mostvulnerable development stage. Namely, theirdevelopment potential is high, but it might besoon lost if no appropriate sources of financeare available. The Fund's grant can be acquiredby enterprises registered up to 18 months andlocated in technological parks and universityincubators, complying also with other tenderconditions.HOW DOES IT WORK:The enterprise shall apply for tender on grantsaimed at starting-up enterprises located inentities of innovative environment, where theapplication shall include the elements specifiedin the public tender. In case of a positiveassessment, the Fund shall provide the enterprisewith the above-mentioned grant in the form ofreimbursement of eligible starting expenses.GRANTSSLOVENE ENTERPRISE FUND2010 - 2013grant line SME2010 - 2013grants forstart-upsgrantSME SMESMESME SMEEquity Financing Line for SMEsIn 2010, the Fund is going to introducenew forms of SME financing, namelyimplementation of equity financing instruments.AIM:The Fund will implement the equity financingline through selected private owned venturecapital companies, which should be managedby independent venture capital managers.Selected private venture capital companies,which will also attract other private investors,increasing thus efficiency of investments andproviding for multiplication of public funds,will offer additional sources of equity financingin the form of venture and mezzanine capitalfor innovative and promising SMEs, providingthem with additional sources available fortheir development and growth, and easierand better access to foreign markets. Bysuch implementation concept on the equityfinancing line, the Government of theRepublic of Slovenia would like to acceleratethe development of equity capital market,formation of new venture capital companies,EQUITY FINANCINGSLOVENE ENTERPRISE FUND2010 - 2013mezzanineinvestmentcapitalmezzaninecapitalequity financeline SME2010 - 2013private venture capitalcompanies - PVCCSMEventurecapitalinvestmentventurecapitaland to increase the volume of venture capital supply for development &innovative enterprises with a potential of fast growth, on the Slovenian market.HOW DOES IT WORK:Equity financing instruments will be implemented through a public tender,inviting private venture capital companies, which comply with terms andcriteria of the tender, where such companies will acquire share of the Republicof Slovenia equalling up to 49 % of their total capital or a minimum of EUR1 million, respectively. These selected venture capital companies will be able toinvest the acquired funds, together with funds provided by private investors, asventure and mezzanine capital in promising, innovative and fast-growing SMEs.3

MISSION• To improve access to favourable financial sources, including state aid, fordifferent SME development & business projects, including funds intended forenterprise start-up and micro-financing, which will enable the growth anddevelopment of the enterprise sector in the Republic of Slovenia,• Distribution of the Fund’s state aid in such a proportion as to involve themin all development stages of the enterprise’s life cycle (see picture below),• Creation of visible state aid effects in the environment, such as growthof enterprises, creating higher value added per employee, replacementof low value-added jobs by high value-added ones, successful transfer ofdevelopment ideas of entrepreneurial individuals into market-successfulundertakings, and creating new innovation-oriented enterprises with agrowth potential,• Implementation of public tenders aimed at granting state aid fordevelopment investments in the enterprise sector based on the principles ofsimplicity, clearness and transparency.SMEcash flowEQUITYFINANCINGequity finance line SME 2010 - 2013mezzanine investment capitalventure capital investmentGUARANTEESCREDITSguaranteesfor newbusinessguarantee credit line SME 2010 - 2013micro guaranteesdevelopment guaranteesguarantees for tehnology projectscouter-guarantees for regional guarantees schemesGRANTSgrant line SME2010 - 2013grantsforstart-upscash flowLOW RISKSEEDFINANCEseed stageHIGHRISKENTERPRISECREATIONSTART-UPFINANCEFINANCE FOR GROUTHAND DEVELOPMENTII STAGE FIANCEstart-up stage development stage further growth stageSMEdevelopmentlevel4

PRODUKT LFPublic Tender: Equity Financing - Capital Investmentsof the Republic of Slovenia in PrivateVenture Capital Companies - PVCCsEquity financing instruments will be implemented in such manner that theFund will tender out public funds for capital investments by the Republicof Slovenia in private venture capital companies (hereinafter: PVCCs)established pursuant to the Venture Capital Companies Act (Official Gazetteof the RS, No. 92/07 ZDTK, as amended). Selected PVCCs will further investacquired funds in SMEs potentially suitable for equity forms of financing,namely in the form of investments of venture and mezzanine capital.REPUBLIC OFSLOVENIAEUROPEANREGIONALDEVELOPMENTFUNDMINISTRY OFECONOMYSLOVENE ENTERPRISE FUNDequity financelineSMEcapitalinvestmentsof behalfof the RSprivateventurecapitalcompanies- PVCCmezzanineinvestmentcapitalventurecapitalinvestmentSME

Tender aim:Tender subject:Group of beneficiaries:Basic conditions to applyfor the tender:Application andapplication submissiondate:Contact:The public tender aims at development of the existing venture capital market in Slovenia, and at promotion of equityinvestments in SMEs in the form of venture capital and mezzanine capital investments. The Republic of Slovenia shall usethis instrument to increase the number of private venture capital companies, to promote development of SMEs with a highgrowth potential, and to multiply the effects of public investments.Tender subjects are capital investments of the Republic of Slovenia in PVCCs.Eligible beneficiaries for capital investments of the Republic of Slovenia will be PVCCs established and operating inaccordance with the Venture Capital Companies Act (Official Gazette of the RS, No. 92/07 and 57/2009; hereinafter: VCCA)and the Community Guidelines on State Aid to Promote Risk Capital Investments in Small and Medium-sized Enterprises2006/C 194/02. Final beneficiaries of funds are micro, small and medium-sized enterprises according to the EU definitionset out by Annex 1 to the Commission Regulation (ES) No. 800/2008 as of 6 August 2008, which will be able to obtainfunds through PVCCs in the form of venture and mezzanine capital.• Applications may be submitted by PVCCs operating in line with the Community Guidelines on State Aid to Promote RiskCapital Investments in Small and Medium-sized Enterprises 2006/C 194/02 and VCCA;• In accordance with VCCA, PVCC is represented and managed by other management company, carrying out also all PVCC'stransactions;• The Republic of Slovenia's share in the form of share capital and subsequent payments in an individual PVCC shall notexceed 49 %; and at least 51 % of share capital shall be provided by private shareholders;• Minimum capital investment of the Republic of Slovenia in an individual PVCC shall amount to EUR 1 million;• PVCCs shall not be under compulsory compensation, bankrupt or winding-up procedure, and shall have all their obligationsto the Republic of Slovenia settled.Public tender for capital investments in PVCCs will be published and implemented by the Fund on behalf of the Republicof Slovenia. The tender, which is planned to be published in February 2010, is expected to be open until 30 June 2011 oruntil the funds are spent, respectively. As foreseen, PVCCs shall be able to apply each three months.For more information, please, contact the following phone number: +386 2 234 12 48 − Vlasta Babič, M.Sc, or by e-mailvlasta.babic@podjetniskisklad.si, +386 2 234 12 86 − Simona Grobelnik, or by e-mail simona.grobelnik@podjetniskisklad.si

P1 2010Public Tender: Fund's Bank Loan Guaranteeswith Subsidized Interest RateThe public tender aims at encouraging enterprises to implement operationsenabling their competitive launch on the market, improvement of marketposition, and expansion of activity and improvement of current assetfinancing in difficult economic conditions. The Fund’s guarantee representsan increased possibility to take loans for those enterprises that haveinsufficient guarantee to collateralize a bank loan, or for enterprises wishingto release a part of their guarantees for a new investment cycle. Advantagesof the loan is the lower interest rate, loan maturity, and the possibility of agrace period in loan repayment.The Product P1 is counter guaranteed by the European Investment Fund,because between 2009 and 2011, the Product enjoys benefits of theguarantee issued under the European Community’s Competitiveness andInnovation Framework Programme.GUARANTEES - CREDITSSLOVENE ENTERPRISE FUND2010 - 2013guarantee - credit line SME2010 - 2013The list of participating banksBanka Celje d.d., Gorenjska Banka d.d., Raiffeisen Banka d.d., Poštnabanka Slovenije d.d., BKS Bank AG, Hypo-alpe-adria bank d.d.,Probanka d.d., Deželna Banka Slovenije d.d., Banka Volksbank d.d.,Abanka Vipa d.d., Banka Koper d.d., Nova kreditna banka Maribord.d., Factor banka d.d., Nova Ljubljanska banka d.d., SKB d.d. inUniCredit Banka Slovenije d.d.guaranteesfor newbusinessparticipatingbankscreditmicroguaranteesdevelopmentguaranteesguaranteeSME

Guarantees for New Business Micro - Guarantees Development GuaranteesAimBeneficiariesExcluded enterprisesPromotion of growth and developmentof new enterprises.Micro, small and medium-sizedenterprises, registered less than 42months, and has been paying out salariesfor at least 4 months.Solving minor liquidity problems andensuring smooth current operations inSMEs.Micro, small and medium-sizedenterprises.Encouraging enterprises to undertakeinvestments in development providingfor competitive launch on the market,improving market position, andexpanding of activity.Micro, small and medium-sizedenterprises.Enterprises, which are excluded from possibility to apply for tender in line with the tender terms and conditions pursuant tolegal bases and regulations of the European Commission.Purpose of investments(eligible costs without VAT)• Tangible investment costs,• Intangible investment costs,• Working capital.• Working capital.• Tangible investment costs,• Intangible investment costs,• Working capital.Maximum investmentamount (eligible costswithout VAT)Not limited. Not limited. Not limited.Maximum loan amountEUR 1,500,000, of which max. amountof loan for working capital financingequals EUR 200,000.EUR 200,000.EUR 1,500,000, of which max. amountof loan for working capital financingequals EUR 200,000.Interest rate on the bankloanGuarantee amount6-month EURIBOR + 0,5 %. 6-month EURIBOR + 0,5 %. 6-month EURIBOR + 0,5 %.• Guarantees equalling 80 % of theloan principal without interest shallbe approved for eligible costs ofinvestments related to purchase ofnew technological equipment, andfor enterprises with the status of a newenterprise.• Guarantee equalling 60 % of loanprincipal without interest.• Guarantees equalling 80 % of theloan principal without interest shallbe approved for eligible investmentcosts related to purchase of newtechnological equipment,• Guarantee equalling 60 % of the loanprincipal without interest shall beapproved for all other eligible costs.

Repayment periodCommission• Repayment period for a loan intended100 % for working capital shall be 1.5to 3 years,• Repayment period for a loan intendedfor financing operations fully orpartially without working capital shallbe 1.5 to 10 years.• Repayment period for a loan intended100 % for working capital shall be 1.5to 3 years.• Repayment period for a loan intendedfor financing operations fully orpartially without working capital shallbe 1.5 to 10 years.Commission for guarantees approval and management shall account for 0,5 % of the guarantee in single amount.Insurance• Insurance of credit is carried out by the bank in compliance with its transactional terms,• Insurance of guarantee: The Fund concludes an agreement on the insurance claims of its work with the bank.Preparation of applicationand application packPlease, find more at the website www.podjetniskisklad.siContactsMore information: +386 2 234 12 74 − Bojana Mikeln, +386 2 234 12 88 − Boris Ritlop, and +386 2 234 12 64− Boštjan Vidovič M.Sc., or by e-mail: bostjan.vidovic@podjetniskisklad.si

P1 TP 2010Public Tender: Fund's Bank Loan Guarantees for Technological ProjectsThe public tender aims at encouraging enterprises to implement projectsenabling competitive launch on the market, improvement of market position,and expansion of activity and improvement of working capital financingin difficult economic conditions. The tender is especially intended forspin-off enterprises cooperating intensively with knowledge-based institutions.GUARANTEES - CREDITSSLOVENE ENTERPRISE FUND2010 - 2013The list of participating banksBanka Celje d.d., Gorenjska Banka d.d., Raiffeisen Banka d.d., Poštnabanka Slovenije d.d., BKS Bank AG, Hypo-alpe-adria bank d.d.,Probanka d.d., Deželna Banka Slovenije d.d., Banka Volksbank d.d.,Abanka Vipa d.d., Banka Koper d.d., Nova kreditna banka Maribord.d., Factor banka d.d.guarantee - credit line SME2010 - 2013guarantees fortechnologicalprojectsparticipatingbanksguaranteecreditSME

AimBeneficiariesExcluded enterprisesPurpose of investments(eligible costs without VAT)Maximum investmentamount (eligible costswithout VAT)Maximum loan amountLoan interest rate with thebankGuarantee amountRepayment periodCommissionsInsurancesPreparation of applicationand application packThe tender is intended primarily for SMEs transferring knowledge from educational and scientific institutions into the businesssphere.Micro, small and medium-sized enterprises.Enterprises, which are excluded from possibility to apply for tender in line with the tender terms and conditions pursuant tolegal bases and regulations of the European Commission.• Tangible investment costs,• Intangible investment costs,• Current assets.Not limited.EUR 1,000,000, of which max. amount of loan for working capital financing equals EUR 200,000, and max. amount forintangible project financing equals EUR 200,000.6-month EURIBOR + 1.2 %.• Guarantees equalling 80 % of the loan principal without interest shall be approved for eligible project costs.• Repayment period for a loan intended 100 % for working capital shall be 1.5 to 3 years,• Repayment period for a loan intended for financing projects fully or partially without working capital shall be 1.5 to 7 years.Commission for guarantee approval and management shall account for 0.5 % of the guarantee, in single amount.• Insurance of credit is carried out by the bank in compliance with its transactional terms,• Insurance of guarantee: The Fund concludes an agreement on the insurance claims of its work with the bank.Please, find more at the website www.podjetniskisklad.siContactsFor more information, please, contact the following phone numbers: +386 2 234 12 74 − Bojana Mikeln, +386 2 234 12 88− Boris Ritlop, and +386 2 234 12 64 − Boštjan Vidovič, M.Sc., or by e-mail: bostjan.vidovic@podjetniskisklad.si

P2 2010Public Tender: Co-financing (Grants) for Enterprise Start-ups in Entitiesof Innovative EnvironmentGrants are intended for innovative enterprises. An innovative enterpriseis considered an enterprise developing products, processes and services,responding in an innovative manner to market demands, and focusingon customers' problem solving. An innovative technological enterprise isconsidered an enterprise characterised by a high content of knowledge inits services or products, a potential of fast growth, education and expertknowledge in employees, and performance in a global market niche.GRANTSSLOVENE ENTERPRISE FUND2010 - 2013grant line SME2010 - 2013grants forstart-upsgrantSME SMESMESME SME

AimBeneficiariesPurpose of investments(eligible costs without VAT)Maximum investmentamount (eligible costswithout VAT)• Successful transfer of development ideas of entrepreneurial individuals and groups into market-successful undertakings,and creation of new innovation-oriented enterprises with a growth potential in the development and commercialisation ofproducts, processes and services,• To enable newly established development-oriented enterprises located in technology parks and incubators to acquire grantsto finance enterprise's start-up,• Encouraging establishment and start-up of emerging enterprises in technology parks and incubators.Enterprises located in entities of innovative environment (technology parks, enterprise incubators and university incubators),which are registered up to 18 months counted by the date of submission of the application, while having a new businessprogramme.• Costs for preparation of Business Plan for new business programme,• Salaries of employees involved with the development work in the enterprise,• Promotion costs,• Rental costs for equipment involved in the implementation of new business programme,• Premises rental costs,• Costs of testing and additional training for the implementation of new business programme,• Costs of patent and other protections,• Tangible investments related to new business programme development,• Intangible investments related to new business programme development,• Eligible costs do not include expenditure for purchase of road transport vehicles.Not limited.Maximum grantPreparation of applicationand application packContactsMaximum grant equals EUR 30,000 for target groups A and B, and EUR 10,000 for target group C, respectively.Please, find more at the website www.podjetniskisklad.siFor more information, please, contact the following phone numbers: +386 2 234 12 53 − Simon Böhm, +386 2 234 12 40− Nataša Krajnc, +386 2 234 12 72 − Manfred Lepej, M.Sc., and +386 2 234 12 64 − Boštjan Vidovič, M.Sc, or by e-mailbostjan.vidovic@podjetniskisklad.si.

P3 2010Public Tender: Counter - Guarantees for RegionalGuarantee SchemesCounter - guarantees for regional guarantee schemes provide support forregional guarantee schemes operating in Slovenia and providing guaranteesas collateral for smaller bank loans taken by SMEs from their regions. TheFund uses this product to ensure multiplication and linking of financialsources also at regional level, while providing also a uniform support inprovision of favourable financial sources for SMEs in individual regions ofSlovenia.The Product P3 is counter guaranteed by the European Investment Fund,because between 2009 and 2011, the Product enjoys benefits of theguarantee issued under the European Community’s Competitiveness andInnovation Framework Programme.GUARANTEES - CREDITSSLOVENE ENTERPRISE FUND2010 - 2013guarantee - credit line SME2010 - 2013counter - guaranteesfor regional guaranteesschemesregionalguarantees schemesguaranteebankscreditSME

AimInvolved institutionsimplementing the tendersBeneficiariesExcluded enterprisesPurpose of investments(eligible costs without VAT)Maximum investmentamount (eligible costswithout VAT)Maximum loan amountMaximum guaranteeRole of the FundPublicationPreparation of applicationand application packContactsFinancing of tangible and intangible SME investments.Regional development agencies and institutions having a Regional Guarantee Scheme established, and singed CooperationAgreement with the Fund.Micro, small and medium-sized enterprises.Enterprises, which are excluded from possibility to apply for tender in line with tender conditions pursuant to legal bases andregulations of the European Commission.• Costs of tangible investments, meaning purchase costs for machines and equipment, purchase of land, land utility andinfrastructure building costs,• Premise building and/or purchase costs, costs of intangible investments, meaning technology transfer in the form ofpurchasing patented rights, licenses, knowledge, and non-patented technical knowledge.Not limited.Maximum loan amounts to EUR 135,625.00 per enterprise.Maximum guarantee amounts to EUR 108,500.00 EUR per enterprise.Providing for a counter guarantee equalling to 50 % of the guarantee approved by the Regional Guarantee Scheme.Tenders will be published by Regional Guarantee Schemes.Please, find more at the website www.podjetniskisklad.siFor more information, please, contact the following phone numbers: +386 2 234 12 40 − Nataša Krajnc or by e-mailnatasa.krajnc@podjetniskisklad.si

Slovene Enterprise FundTrubarjeva 11, 2000 Maribor, Sloveniatel. +386 2 234 12 60www.podjetniskisklad.si