Hrvatski
Entrepreneurs planning investments in the field of defence and security now have access to a new financing opportunity. Since 1 July 2026, the Croatian Bank for Reconstruction and Development (HBOR) has been implementing the “Defence and Security Investment Programme“, financed through the National Recovery and Resilience Plan (NRRP).
The programme provides financing for investment projects under favourable lending conditions, including reduced interest rates and no loan application processing fee. It is intended for projects that strengthen security capacities, support economic modernisation, and contribute to the development of the defence industry.
Who can apply?
Eligible applicants include:
- companies, sole proprietors, and other private sector business entities, regardless of their size;
- local and regional self-government units carrying out economic activities;
- companies, institutions, and agencies owned or majority-owned by the Republic of Croatia or local and regional self-government units that perform economic activities.
Applicants must be registered and have their headquarters in the Republic of Croatia.
Entities classified as undertakings in difficulty under European Union rules are not eligible for financing.
What can be financed?
The programme supports investments in tangible and intangible fixed assets required for the implementation of strategic defence and security projects.
Eligible investments include, among others:
- construction of protective facilities and civil protection infrastructure;
- construction and modernisation of dual-use infrastructure;
- investments in cybersecurity;
- modernisation of production processes and business operations;
- research, development, and innovation in the defence and security industry;
- development of software, mechanical, electronic, electrical engineering, and aerospace technologies.
In addition to fixed assets, the programme also allows financing of working capital of up to 30% of the approved loan amount, provided it is directly related to the implementation of the investment or business activities in the defence and security sector.
All investments must comply with applicable European Union and Croatian legislation and adhere to the Do No Significant Harm (DNSH) principle with regard to environmental protection.
Available loan amount
The minimum loan amount is generally EUR 100,000.
There is no predefined maximum loan amount. The approved amount depends on:
- the value of the investment;
- the applicant’s creditworthiness;
- the purpose of the investment;
- HBOR’s available funding sources.
Depending on the applicable State aid rules, financing of up to 75%, 85%, or even 100% of the eligible investment value (excluding VAT) may be available.
Favourable interest rates
The programme offers favourable financing conditions thanks to funding provided through the NRRP.
For private sector applicants:
- loans of up to EUR 400,000 are subject to a fixed annual interest rate of 2.00%;
- for loans exceeding EUR 400,000, HBOR determines the applicable interest rate on a case-by-case basis, with the possibility of an interest rate subsidy reducing the final rate to as low as 1.50% per annum.
For public sector entities, the fixed annual interest rate is 1.50%.
The maximum interest rate subsidy generally amounts to EUR 1 million, while strategic projects of significant scale may qualify for subsidies of up to EUR 2 million, depending on the programme conditions.
Repayment period
Loans may be approved with a repayment period of up to 20 years, including a grace period of up to three years.
Where justified by the nature of the project, a longer grace period may also be approved.
Loan disbursement
The loan may be disbursed either as a single payment or in instalments, depending on the implementation schedule of the investment.
Funds are generally paid directly to suppliers or contractors upon submission of documentation confirming the intended use of the loan.
The portion of the loan allocated to working capital may be paid directly to the borrower, subject to subsequent proof of eligible use.
Collateral
HBOR determines the required collateral based on the risk assessment of both the project and the applicant.
Collateral may include:
- promissory notes and bills of exchange;
- pledges over assets;
- insurance policies assigned in favour of HBOR;
- bank guarantees;
- guarantees issued by HAMAG-BICRO;
- other standard banking collateral instruments.
Why is this programme important?
In recent years, the European Union has placed increasing emphasis on strengthening resilience, security, and technological independence across its Member States. As a result, greater financing opportunities are becoming available for projects that contribute to the development of the defence industry, cybersecurity, dual-use infrastructure, and advanced technologies.
For businesses developing products or services in these sectors, this programme represents an opportunity to finance investments under significantly more favourable conditions than those typically available through commercial lending.
Planning an investment? Check whether your project is eligible.
If you are considering an investment in the defence and security sector, it is important to assess your project’s eligibility and prepare the required documentation at an early stage.
At Sensum, we provide support in project assessment, documentation preparation, and advisory services throughout the financing process, helping you determine whether this HBOR programme is the right fit for your investment plans.
For more information, feel free to contact us!