BRE Bank - BRE-UNIA Investment Credit

European Union funds

BRE-UNIA Investment Credit

BRE-UNIA is a credit for potential recipients and beneficiaries of European Union financial assistance including:

self government units,
large companies, small and medium-sized enterprises,
enterprises in food processing sector,
Polish State Railways (PKP), General Directorate of National Roads and Motorways (GDDKiA),
Harbours Authority of Szczecin, Świnoujście, Gdynia and Gdańsk,
universities and colleges,
kindergartens, schools and educational institutions,
hospitals and health care institutions.

BRE-UNIA is a credit designed to finance investments using EU funding. The product has two components:

bridge-financing credit to finance a part of the qualified costs of the project up to the amount of the subsidy until the subsidy is received,
investment credit to finance the remaining qualified and non-qualified costs of the project.

The bridge investment credit is repaid upon the receipt of the subsidy (one-off payment or by instalment if the subsidy is paid in tranches).

Benefits to Clients

advisory on available EU funding,
simple procedures: bridge-financing and investment credits available under one application, agreement, and collateral,
bridge financing of the cost of the project up to the amount of the subsidy until the subsidy is received,
investment financing of a part of the Borrower’s own contribution,
lower interest rates on the bridge-financing credit,
separate account for received subsidies (no income tax charged *) enables correct tax accounting in view of the subsidy,
flexible project assessment by the bank.

*Legal basis: Personal Income Tax Law dated 26 July 1991(Journal of Laws from 1991, No. 80, item 350 as amended, Art. 21.1.46) and the Corporate Income Tax Law dated 15 February 1992(Journal of Laws from 1992, No. 21, item 86 as amended, Art. 17.1.23).

Eligibility, Terms and Conditions

Borrower’s Own Contribution

Typically, the Borrower’s own contribution should represent 40% of the budgeted cost of the investment. In exceptional cases of projects which, in the opinion of the bank, will significantly enhance the Borrower’s standing, and whose implementation without EU funding and bank credits would be difficult or impossible, the own contribution may be reduced to 25% or less of the cost of the investment.

Required Documents

Applicants for a BRE-UNIA credit shall present to BRE Bank:

application for an investment credit and appendices as per the forms currently used by the bank,

application for financial assistance (and required appendices) depending on the measure and the operational programme.

The Borrower shall have a signed financing agreement with the Implementing Institution responsible for the relevant measure of the operational programme.

Collateral of the Amount of the Credit (Bridge and Investment Credit):

all eligible collateral under the Bank’s Crediting and Guarantee Policy Guidelines,
guarantee issued by Bank Gospodarstwa Krajowego under the Fundusz Poręczeń Unijnych (FPU) and the Fundusz Rozwoju Inwestycji Komunalnych (FRIK),

additional collateral involves the assignment of receivables under the subsidy agreement endorsed by the other part to the Borrower’s subsidy agreement, i.e., the Implementing Institution or the organisation responsible for measures under the operational programme.