MFB BUSINESS FINANCING PROGRAM 2020

The main purpose of the Program of Hungarian Development Bank (hereinafter: MFB Zrt.) is to grant financing with favorable conditions to micro, small and medium enterprises in order to increase their role in employment, to strengthen their innovation ability and supplying activities, to finance their investments aiming at environmental protection, development of rural areas and health care, as well as to provide additional resources for tenders concerning development and investment.
Within the framework of the Program, refinancing contracts and credit agreements may be concluded until 31^th December, 2020.

Why is the MFB Business Financing Program 2020 advantageous to your company?

You can gain access to a HUF or EUR investment loan with a maturity of more than one year with favourable interest rate.
You can bring forward and realize your ideas related to the development of the company.
You can strengthen your company’s market position.
The credit can be used for financing of purchase of fixed assets and used assets furthermore for financing of purchase, supply and production of intangible assets in connection with investment, development.
The credit can be used for financing of permanent working capital in connection with the investment.

To whom do we recommend the MFB Business Financing Program 2020?

To micro-, small and medium sized enterprises as well as enterprises not qualified as SME established in Hungary or established in European Economic Area but having branch of enterprise in Hungary and operating as sole proprietor, sole proprietorship, partnership, cooperative, European joint-stock company.

Features of the MFB Business Financing Program 2020

Loan purposes:

o Healing in Hungary

o Green economy development

o Home project - Housing

o Enterprise promotion – Development of the business environment

o Science - Innovation - Growth

o Employment

o General investment purposes;

o Investment purposes related to environment protection;

o Investment purposes related to cultural activities;

o Investment purposes serving health care;

o 7.17 MFB Kisfaludy Tourism promoting loan program and 10.3 Drug store (Patika) loan program purposes are not available in our bank.

Loan amount: Minimum HUF 5 000 000, maximum HUF 3 000 000 000,-.
Term: Minimum 1 year + 1 day, maximum 15 years. The availability period is maximum 2 years from the conclusion of the contract.
Repayment: The grace period is maximum 3 years from the conclusion of the contract. The repayment is due after the grace period quarterly in equal installments.
Interest payment: Calendar quarterly.
Own funds: Its expected ratio is defined according to the bank’s internal regulations.
Currency: HUF or EUR
Interest rate: Refinancing base rate + Refinancing margin of MFB + Margin of credit institution¹

Loans disbursed in HUF:

Refinancing base rate	3 month BUBOR
Refinancing margin of MFB (VFP-HFIX²)	1.36% /year
Margin of credit institution	for SME’s	max. 2.5%/year
	for enterprises not qualified as SME’s	max. 2.0%/year

Loans disbursed in EUR:

Refinancing base rate	3 month EURIBOR
Refinancing margin of MFB (VFP-EFIX³)	1.30% /year
Margin of credit institution	for SME’s	max 2.5%/year
	for enterprises not qualified as SME’s	max 2.0%/year

Handling fee: not charged.
Disbursement fee: Flat fee, according to the current List of Conditions for Enterprises, Municipalities and Business Organizations of the Bank⁴, but maximum 1% of the loan amount, due at the first disbursement.
Alteration fee: According to the current List of Conditions for Enterprises, Municipalities and Business Organizations of the Bank⁴, but maximum 1 % of the outstanding capital and maximum HUF 1 000 000,-.
Credit approval fee: According to in the current List of Conditions for Enterprises, Municipalities and Business Organizations of the Bank⁴, but maximum 1 % flat fee and maximum HUF 1 000 000,-.
Availability fee: 0.40 % p.a., calculated on the non-utilized credit line, due calendar quarterly.
Pre-payment handling fee: According to the current List of Conditions for Enterprises, Municipalities and Business Organizations.⁴

For which purposes can the loan be used?

For investment in tangible assets;
for purchase or production of intangible assets directly related to an investment or development;
for long term working capital financing directly related to an investment or development as well.

Other conditions

The usage of the credit must be certified by invoices. At the time of the disbursement the credit facility the invoices must be attached to the disbursement request.
In case of real estate purchase, additional investments with a minimum value of 10% shall be implemented and activated on the real estate.
The credit granted with favorable interest rate within the framework of the loan program is qualified as a state aid, while as far as its form is concerned it is qualified as a credit with preferential interest rate in de minimis aid or regional block exemption aid category. The certificate of state aid containing the aid content of the granted credit and the category of aid is issued by MFB Zrt. for the beneficiary.
Financing of a completed investment is not possible, but in the case of de minimis aid category, financing is still possible after the start of the investment, but in the case of regional block exemption aid category financing of started investment is not possible.
The usual collaterals are acceptable for the application. The surety of Garantiqa Hitelgarancia Zrt. or Rural Credit Guarantee Foundation are available optionally.

Further details of the loan program are available on the website of MFB Zrt.:
https://www.mfb.hu/backend/documents/VFP%20Termékleírás2019.09.30_1.pdf

Apply

If you have any questions, please feel free to ask your contact person at the bank, or our colleagues at one of our many bank branches.

¹ It is set by the bank according to the rating of the Customer.

² VFP-HFIX is the refinancing margin of MFB fixed for the whole duration of the loan implemented for HUF contracts concluded after 30 September 2019 under MFB Business Financing Program 2020.

³ VFP-EFIX is the refinancing margin of MFB fixed for the whole duration of the loan implemented for EUR contracts concluded after 30 September 2019 under MFB Business Financing Program 2020.

⁴ For Small Business Customers according to the current “List of Credit Fee Conditions for Small Business Customers”. Small Business Customers are defined in the current “List of Conditions for Small Business Customers”.

This information should not be considered an offer. The Bank reserves the right to change the conditions. UniCredit Bank reserves the right to decide individually on loan disbursement and on the amount and conditions thereof, based on the loan application and documents submitted.