In accordance with the Agenda of economic reforms, where entrepreneurship is defined as key factor for future economic growth, and in accordance with Government Action plan for 2006, »Entrepreneurship incentive Program« has been prepared.
This Program includes financial support through banking sector, in cooperation with the Employment Agency of Montenegro, Directorate for development of small and medium-sized enterprises and Development Fund. Mentioned institutions have prepared joint offer of support for small and medium-sized enterprises, and entrepreneurs, where each institution will realize its own projects.
The basic aim of this Program is enabling small and medium-sized enterprises and entrepreneurs to gain, under favorable conditions, credit support, as they could have stable business, grow and develop their business, employ new workers, and thus, contribute to general development of Montenegrin economy.
The emphasis of all three institutions will be put in new employment, reducing disproportion in regional development of Montenegro, as well as dynamic growth and development of SMEs.
Employment Agency will finance start-ups, and entrepreneurs, under defined conditions. Employment Agency will stimulate start-ups by offering credit support for the most qualitative projects, appraised by expertise team during Projects “Self-employment Program� and “14 credit lines�, and that did not get credit support then, but also for new interested individuals, who want to start their own business.

The conditions of credit resources:
Interest rate – 3% at annual level.
Grace period -1 year.
Repayment period -3 for start-ups and 2 for enterprises.
Credits repayment – half-year annuity
During grace period, the interest rate is included into principal.

Directorate for development of small and medium-sized enterprises will support developing programs of micro, small and medium enterprises that are operation 1 to 3 years, aiming at their growth and development. In addition, the project “Creation of Cooperatives� will be continued, which is aimed at supporting all enterprises – micro, small and medium, in order to create cooperatives with primarily produces. Directorate will provide advisory support as well, directed to enhancement of business functions.

The conditions of credit resources:
Credit amount from 20.000 to 100.000 €
Repayment period – to 6 years
Interest rate – 3-5 % at annual level
Grace period –up to 18 months

This Program is aimed at supporting investment projects in the following sectors:

1. Agriculture
2. Creation of cooperatives (in primarily production)
3. Production
4. Tourism
5. Services, except trade
6. Financing potential export oriented enterprises

Development Fund will continue credit support for existing small and medium-sized enterprises in private sector, that operate more than 3 years, and that have dynamic growth.

The conditions of credit resources:
Maximum credit amount per project is 200.000 €
Interest rate – 5-7 % at annual level.
Grace period -2 years
Repayment period – to 7 years

This Program includes continuation of already initiated projects with commercial banks that expressed their readiness to further realization of credit lines, also by placing their own resources.
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