Croatia has launched a new financial instrument with support from the European Social Fund Plus (ESF+) that offers microloans for growth and inclusion. It aims to strengthen micro and small enterprises, stimulate investment, and create new jobs with a strong emphasis on supporting those most vulnerable in the labour market.

This marks the first time such an instrument is introduced as part of the Efficient Human Resources 2021–2027 Programme and a big step towards boosting inclusive entrepreneurship in the country. An estimated 1 100 loans are planned for approval.

Favourable conditions for disadvantaged groups

The scheme specifically targets newly established businesses (operating for less than three years) and enterprises owned by individuals from disadvantaged groups, including people with disabilities, those over 55, young adults aged 18-29, and individuals without secondary education.

Eligible businesses can access loans ranging from €1 000 to €25 000, at a fixed interest rate set 2.5% below Croatia’s base rate, but not dropping below 0.5% – the current minimum rate. This ensures predictability and affordability for borrowers throughout the repayment period.

To further promote inclusive hiring, the instrument allows for up to 30% of the loan principal to be written off if the business hires additional staff from one of the targeted vulnerable groups. Loan funds can be used to finance fixed assets (both material and immaterial), with up to 30% of the loan also eligible for working capital needs.

Expansion of small businesses

This new financial instrument is an operation of strategic importance to expand small-scale economic activity, boost employment, and foster social inclusion, all key objectives of the ESF+ in Croatia. By supporting both early-stage businesses and underrepresented entrepreneurs, it contributes to a more resilient, equitable, and dynamic labour market.

This initiative is led by the Ministry of Labour, Pension System, Family and Social Policy, in collaboration with the Croatian Agency for SMEs, Innovations and Investments (HAMAG BICRO).