Mazovian Fund of Credit Sureties

Project information

Index: 0875R2
Acronym:IMAGEEN
Priority:1: Innovation and the knowledge economy
Sub Theme:Entrepreneurship and SMEs
Location POLAND CENTRALNY Warsaw Mazowieckie Start/End date of the practice
Start: 2003-01-20
End: 2010-10-01

Topic of the practice

Business creation financial support

Good Practice Information

The City of Warsaw delivers the Mazovian Fund of Credit Sureties -a fund dedicated to supporting external financing for SMEs.
The aim of the Fund is to help Polish entrepreneurs from the Small and Medium Enterpises (SME) segment in improving access to external financing through giving guarantee for civil law subjects that will secure repayment of credits and bank loans. With large scale business activities MFPK carry out public tasks concerning preventing unemployment and labor market activation. Thanks to broad cooperation with banks MFPK can provide its customers with easier access to business information, help identify the optimal source of financing of current economic activity and investment , specify the areas of increased risk, etc. Since the beginning MFPK managed to create safe guarantee procedures and cooperation conditions. MFPK beneficiaries are small and medium companies that are operating on the market or are going to enter the market and have headquarter on one department of the Mazowian region.
MFPK price policy is based on provision and fee table that is prepared by the Fund. This table takes into consideration risk connected to the guarantee and period for which it is given. Fund charges from 1-3% fee from the total amount of guarantee. Initial payment for considering application is 50PLN (approx.€12) fee does not apply to beneficiaries who are running business in the area of the Fund's shareholders. There is special price policy for entrepreneurs and activities which main aim is infrastructure development, environmental protection and information society. These areas can obtain lower price for guarantee.

Evidence of success

At the end of 2009, 1,700 entrepremeurs received assistance from Fund (the whole amount of given guarantee was 2053). The final number of granted guarantees has growin each year : 11 in 2004, 114 in 2005, 241 in 2006, 473 in 2007, 594 in 2008, 620 in 2009. The number of newly created jobs over the past six years is estimated at around 3,700 thousand. Thanks to the MFPK guarantees entrepreneurs from Mazowieckie region could take credits and borrow loans for current activities and investments related to the develop-ment of the company with a total value of almost 660 million PLN.

Contact details to obtain further information on the practice

Mazovian Fund of Credit Sureties

biuro@mfpk.com.pl

www.mfpk.com.pl

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