One of the long-term goals of the European Union is sustainable development and protection of environment. One part of this effort is to make the waste management systems more efficient. Roughly 1,500 enterprises are active in this segment of economy. SMEs planning to acquire new technologies or expand their business can finance their projects on preferential terms through the Czech-Moravian Guarantee and Development Bank (ČMZRB).
Enterprises active in the segment of waste management are eligible recipients in most of the bank´s programs. As the importance of sustainable and circular economy increases, ČMZRB together with the Ministry of the Environment and the Ministry of Industry and Trade decided to increase the level of support available to this sector under our flagship program EXPANSION. This program aims to support SMEs in their expansion through interest-free investment loans or through bank guarantees for both investment and working capital loans. It is financed from the Operational Programme Enterprise and Innovation for Competitiveness. Only SMEs located out of the City of Prague can be supported until the end of June 2023.
Waste management activities are now included in this program as one of the so-called special supported activities. This means that enterprises can apply for higher loan amount (up to CZK 60 million, app. EUR 2,3 million) with longer maturity (up to 10 years) and longer grace period (up to 4 years). Interest-free loan from the ČMZRB can cover up to 45% of the eligible projects costs, while at least 20% must be commercial financing from one of the cooperating commercial banks or leasing companies. Moreover, the ČMZRB supports enterprises also through interest rate subsidies, which can help them to repay interest of the commercial loan. For special supported activities, the cap for this interest rate subsidy is higher – up to CZK 4 million. In practice, enterprises first repay the commercial loan (which is in the end with no interest or with very low interest thanks to the interest rate subsidy) and only after that they start to repay the loan from the ČMZRB. Instalments are spread over time, which has a very positive impact on the company´s cash flow.
In case of insufficient collateral to secure a loan, enterprises can apply for a bank guarantee. Such a guarantee will enable them to be eligible for commercial financing. In case of special supported activities, the ČMZRB offers guarantees for bigger loans (up to CZK 60 million), with higher coverage (up to 80% of the underlying loan) and with longer guarantee period (up to 10 years).
Beside the EXPANSION program, enterprises active in the sector of waste management can apply for financing from other programs. In case of working capital loans, they can apply for a bank guarantee under the GUARANTEE 2015-2023 program. In case of projects leading to substantial energy savings, they can apply for preferential loans from our programs ENERGY SAVINGS and ENERG. For energy efficiency projects, eligible beneficiaries include also midcaps and large companies as well as companies located in Prague.
Examples of activities, which can be supported as special supported activities: construction or modernization of facilities for the collection, sorting and treatment of waste; construction or modernization of facilities for material and energy recovery of waste; facilities for hazardous waste management.