Component A - Microcredits

Assumptions and tasks
      Under the Microcredits component, assistance is provided for the establishment of small enterprises in the rural areas. Microcredits of up to $5 thousand (i.e. PLN equivalent of that amount) are extended along with a one-time grant totalling PLN3600. The borrowers may expect advisory support.

Beneficiaries
      Voivodships selected for the Microcredits component include kujawsko-pomorskie, małopolskie, podkarpackie, warmińsko-mazurskie and zachodniopomorskie.       Microcredits are available to the unemployed willing to start a non-agricultural job, owners of small enterprises and up to 3 notional hectares farms, living in the rural and mixed urban and rural gminas and small townships (of up to 15 thousand population).
      Microcredits have been provided for finance of any short- and medium-term investment projects, required for establishment of a new, or expansion of an existing business. The product is addressed to private individuals, although their firms may be legal persons. The new, or existing businesses must comply with the Polish law, and satisfy the business registration requirements. Microcredits are also available to the farmers, who rent rooms, camping yards, provide catering and other tourist services, even if such business has not been registered.
      Microcredits may not be provided for refinance of investment projects started, nor for those relating to production and processing of tobacco. Borrowers are required to document their ability to repay the loan with the revenue earned over not more than 36 months. The one-time fixed asset subsidies are not available to the persons already involved in business.

Implementation units
      The Programme Team of the Pre-accession and Structural Programmes Department of the Ministry of Labour and Social Policy is responsible for the supervision of substance and content of the component implementation. Bank Gospodarstwa Krajowego has bee appointed the implementation agency for the component. The PCU co-ordinates implementation of, and information flows within the component, in close co-operation with the Project Team and the Voivodship Project ImplementationUnits, which are the implementation units at the voivodship level. Also, the Voivodship Project Implementation Units supervise the one-time subsidies.
      Microcredits and the one-time fixed asset subsidies will be extended by the service providers, selected in each voivodship in a bidding process. The winners will also provide advisory services to the borrowers.