Expansion Loans

Expansion Loans

Funds Czech enterprises outside Prague with zero-interest loans for expansion investments in equipment and productivity.

The Expansion Loans program is a flagship product of Narodni rozvojova banka (NRB), the Czech Republic's 100%-state-owned development bank established in 1992 and renamed from ČMZRB in September 2021. The program provides zero-percent-interest investment loans to small and medium-sized enterprises (SMEs) operating outside Prague, channeling European structural fund capital under the Operational Programme Enterprise and Innovation for Competitiveness (OPEIC/OP TAK 2021–2027) of the Czech Ministry of Industry and Trade.

Loans range from CZK 1 million to CZK 45 million under standard terms, and from CZK 0.65 million to CZK 60 million for special supported activities. The loan tenor extends up to 10 years with a 3.5-year grace period (extended to 4 years for special activities or disaster-recovery situations). At least 20% co-financing from a cooperating commercial bank is required. Eligible costs include machinery and equipment, software and licenses, and the acquisition or reconstruction of commercial buildings. State-aid compliance is under de minimis or GBER rules. CZ-NACE sector restrictions apply, and businesses located in Prague are excluded due to EU regional aid rules. The program operates on a continuous basis with no fixed application deadlines.

Applicants initiate contact through NRB's inquiry form and must demonstrate SME status under Czech and EU definitions. The requirement for parallel commercial bank financing means borrowers must present a bankable project before NRB consideration. The practical advantage — zero interest over a decade with a multi-year grace period — substantially reduces the cost of capital for equipment-intensive or property-intensive expansions in regions outside the capital.