Preferential loans for SMEs – rules, costs and risks

Preferential loans for SMEs are financial instruments offered by public institutions (including BGK, regional development funds and financial intermediaries under the European Funds), characterised by below-market interest rates, extended repayment periods, the possibility of a grace period and simplified collateral.

In practice, they are an alternative or complement to non-repayable grants, particularly where the investment generates revenue but the company lacks sufficient creditworthiness with a commercial bank. In this article, we discuss the rules for granting preferential loans to the SME sector in 2026, the real costs of financing, the most common risks and the differences compared with non-repayable grants.

What are preferential loans for SMEs?

A preferential loan is a form of repayable public support in which a business receives capital on terms more favourable than those available on the commercial market. The benefit most often results from three elements:

• lower interest rates – often based on the EC reference rate or the NBP rediscount rate, with a margin significantly lower than at commercial banks,
• no or reduced commission and additional fees,
• more flexible collateral – including a blank promissory note, a guarantee from a guarantee fund or a mortgage.

Funds for these instruments come mainly from the European Funds for 2021-2027, including regional programmes (European Funds for the individual voivodeships) and the European Funds for a Modern Economy programme (FENG), as well as from BGK's national funds.

Who can be a beneficiary?

A preferential loan may be granted to a business that meets the definition of an SME in accordance with Annex I to Commission Regulation (EU) No 651/2014. This definition covers:

• micro-enterprises – fewer than 10 employees and turnover or balance sheet total of up to EUR 2 million,
• small enterprises – fewer than 50 employees and turnover or balance sheet total of up to EUR 10 million,
• medium-sized enterprises – fewer than 250 employees and turnover of up to EUR 50 million or balance sheet total of up to EUR 43 million.

The assessment of SME status takes into account capital and personal links (partner and linked enterprises), which in practice often excludes entities belonging to capital groups that exceed the thresholds.

Rules for granting preferential loans

Financing purposes

Preferential loans for SMEs primarily finance:

• development investments – purchase of machinery, equipment, means of transport and intangible assets,
• real estate investments – purchase, construction, extension and modernisation of production, service and office buildings,
• implementation of product and process innovations,
• energy transition – photovoltaics, energy storage, heat pumps, lighting modernisation, energy audits,
• digitalisation and automation of processes,
• working capital linked to the investment – to a limited extent and under certain conditions.

The scope of eligible expenditure is in each case set out in the fact sheet of the specific financial instrument, published by the implementing body or financial intermediary.

Amount of financing and repayment period

In typical instruments available to SMEs in 2026, the parameters are as follows:

• loan amount – from several tens of thousands of złoty to several million, and in selected products even more than ten million złoty,
• repayment period – from 5 to 15 years (even longer for real estate investments),
• grace period for capital repayment – from 6 to 24 months,
• own contribution – usually from 0% to 20%, depending on the product.

Application procedure

The procedure for obtaining a preferential loan usually comprises the following stages:

• analysis of available instruments and selection of a suitable financial intermediary (lists of intermediaries are published by BGK and regional development funds),
• preparation of the application together with a business plan, financial forecasts and investment documentation,
• assessment of repayment capacity (analysis of historical and forecast cash flows),
• establishment of collateral,
• signing of the agreement and disbursement of funds (in a single payment or in tranches),
• settlement of expenditure in accordance with the agreement (invoices, acceptance reports, proof of payment).

To verify which instruments are available in a given voivodeship and sector, it is worth using the grant search engine or consulting an adviser.

The real costs of preferential loans

Interest rate

In 2026, interest rates on preferential loans for SMEs most often range from 0% (in selected instruments with a strong State aid component) to a few per cent per year, depending on:

• the type of instrument and source of financing,
• the nature of the investment (e.g. preferences for green transition, digitalisation, R&D),
• the beneficiary's status (start-up, established business, location in a less developed region),
• the form of State aid applied (de minimis aid, regional investment aid, GBER block exemptions).

By comparison, investment loans from commercial banks are usually based on a reference rate (WIBOR or the index replacing it) plus the bank's margin, which results in a cost of financing significantly higher than in preferential instruments.

De minimis aid and below-market interest rates

The difference between the market and the preferential interest rate constitutes the so-called gross grant equivalent (GGE) and is classified as State aid. It is often accounted for as de minimis aid, the limit of which is EUR 300,000 over a rolling 3-year period per undertaking (in accordance with Commission Regulation (EU) 2023/2831).

Taking out a preferential loan reduces the available de minimis limit for other forms of support in the same period.

Additional costs

In addition to interest, you should take into account:

• costs of establishing collateral (notary, court fees for registering a mortgage, guarantee fund commissions),
• property valuation costs (if required),
• any intermediary commissions (0% in many products),
• accounting and settlement costs.

The profitability calculation should also take into account the opportunity cost, i.e. the possibility of obtaining non-repayable funding.

Risks associated with preferential loans

Risk of losing the preferential status

A breach of the terms of the agreement (failure to achieve the investment objective, late settlement, improper use of funds) may result in:

• recalculation of the interest rate to the market level, including for the past period,
• a demand for repayment of State aid together with interest,
• the imposition of additional contractual penalties.

Liquidity risk

Unlike a non-repayable grant, a loan creates a fixed obligation to repay instalments. A deterioration in economic conditions, a drop in orders or failure to achieve the expected revenue from the investment may lead to problems with debt servicing. Standard practice is to develop stress-test scenarios for the financial forecasts attached to the application.

Risk of cumulation of State aid

When combining a preferential loan with a non-repayable grant or other forms of support, it is necessary to verify the aid cumulation rules. Exceeding the maximum aid intensity set out in the regional aid map or in the relevant block exemption results in the obligation to repay the excess.

Interest rate risk

In products with a variable interest rate (based on a reference rate), rising interest rates translate into higher instalments. This risk does not arise with fixed-rate instruments, but such products are less common.

Collateral risk

In the event of repayment problems, the financing institution enforces its claims against the established collateral. In the case of a mortgage on company or private property, this may lead to enforcement against assets. It is worth considering guarantees from guarantee funds, which limit the involvement of your own assets.

Preferential loan or non-repayable grant?

The choice between a repayable and a non-repayable instrument should result from an analysis of:

• the nature of the investment – whether it generates sufficient cash flow to service the debt,
• the availability of competitive grant calls in the given voivodeship and sector,
• the timeframe within which the funds are needed – loans are usually disbursed faster than grants,
• the State aid limits already used by the company,
• the acceptable level of administrative burden – grant settlement is usually more rigorous.

In practice, we increasingly encounter mixed models, in which part of the investment is financed by a grant and part by a preferential loan. Selecting the optimal financing structure is covered by the funding analysis and selection service.

Where to look for current instruments in 2026?

The main sources of information on available preferential loans for SMEs:

• the European Funds Portal – call schedules and information on financial intermediaries,
• the website of Bank Gospodarstwa Krajowego (BGK), which distributes a significant share of financial instruments from EU and national funds,
• regional development funds (e.g. Małopolski Fundusz Rozwoju, Dolnośląski Fundusz Rozwoju), running programmes dedicated to local SMEs,
• financial intermediaries (loan funds) selected by BGK and regional managing authorities.

An overview of current instruments can be obtained in the free grant search engine with an AI Assistant, which matches programmes to the company's profile.

Practical recommendations before submitting an application

Before deciding to apply for a preferential loan, it is worth:

• carry out a repayment capacity analysis based on realistic financial forecasts,
• verify the full list of available instruments in the given voivodeship and sector,
• compare the terms of several financial intermediaries (interest rate, commissions, collateral, flexibility),
• check the de minimis aid limit already used,
• prepare the investment documentation (quotes, cost estimates, permits, environmental documents),
• assess the possibility of combining the loan with a non-repayable grant.

Repayment capacity analysis, cash flow forecasts and stress-test scenarios are covered by the financial analysis consultation. The full scope of support is described in grant advisory services.

Summary

Preferential loans for SMEs are an important complement to the public support system, offering access to capital on better-than-market terms. Their main advantages are a lower cost of financing, a longer repayment period and flexible collateral.

However, it should be borne in mind that these are repayable instruments, which create real financial obligations and require compliance with State aid rules. The decision to choose this instrument should be preceded by a thorough analysis of repayment capacity, a comparison of alternatives and verification of de minimis aid limits.

Are you planning to finance a development investment? We will verify the eligibility of expenditure, the availability of instruments in your voivodeship and the optimal financing structure.Contact an expert