Transformation Loans

Transformation Loans

Funds enterprises in three Czech Just Transition regions with zero-interest loans for diversification and modernization.

Transformation Loans are zero-percent-interest, zero-fee investment loans administered by Narodni rozvojova banka (NRB) and targeted exclusively at SMEs operating in the three Czech Just Transition regions: Karlovy Vary, Ústí nad Labem, and Moravian-Silesian. The program is co-financed by the EU Just Transition Fund (JTF) through the OP TAK 2021–2027 operational programme and is designed to support economic diversification in communities heavily dependent on coal-sector employment.

Loan amounts range from CZK 0.5 million to CZK 60 million for applicants in the Karlovy Vary and Ústí nad Labem regions, and up to CZK 100 million for projects located in the Moravian-Silesian Region, reflecting the scale of industrial transition required there. The program covers up to 90% of eligible project expenses, with a 10-year tenor and a 4-year grace period. Eligible sectors are defined and restricted to manufacturing, construction, retail and wholesale trade, transport and storage, and cultural and entertainment activities. Eligible costs include machinery and equipment, building technical upgrades, and technological procedures and licenses.

SMEs in the three designated regions apply directly through NRB. The absence of an interest charge or origination fee makes Transformation Loans among the most concessional financing instruments available for Czech industrial SMEs. The 90% coverage ratio and the extended grace period are particularly valuable for capital-intensive transformation projects where revenue ramp-up follows a construction or equipment-commissioning phase. Applicants should verify current NACE code eligibility with NRB before preparing a submission.