Slovak Guarantee and Development Bank

What it means

The Slovak Guarantee and Development Bank, SZRB, is a state-owned bank tasked with supporting areas where commercial banks lend reluctantly or expensively. It focuses mainly on small and medium-sized businesses, new entrepreneurs, municipalities and the renovation of apartment buildings. Unlike commercial banks, its goal is not maximising profit but carrying out the state's development tasks.

The bank offers two main types of support. Direct loans for investment and working capital, often on better terms for early-stage companies or those in disadvantaged regions. And guarantees on commercial bank loans, which lower the bank's risk and let a company obtain a loan even without enough collateral of its own.

SZRB also manages some programmes and financial instruments funded from the state budget or EU sources. Alongside it, Eximbanka SR focuses on supporting exports. Both institutions complement the commercial market rather than replace it.

How it works in practice

For a new entrepreneur, SZRB may be one of the few routes to a loan when there is no track record or assets for collateral. The bank usually asks for a business plan, financial statements or a forecast, evidence of experience and an own contribution. Programme terms change, so work from the current offer.

For established companies the guarantee on a commercial bank loan is of most interest. The company negotiates with its own bank, which requests the SZRB guarantee. An investment or working capital loan can then be more accessible or cheaper. A fee is charged for the guarantee and should be included when comparing total costs.

When applying, we recommend preparing as thoroughly as for a commercial loan: up-to-date accounts, taxes and contributions settled, a realistic cash flow plan and a clear description of what the money is for. Arrears to the state or unfinished bookkeeping are among the most common reasons for rejection.

What to watch out for

Support from a state bank does not mean the loan need not be repaid or that the rules are looser. The loan is just as binding as with a commercial bank, with collateral and penalties for late payment. Under a guarantee, if the company defaults, the commercial bank claims from SZRB, which then recovers the debt from the company.

Some products may contain elements of state aid, such as a subsidised rate or a guarantee. Aid is usually granted under the de minimis regime, whose total is capped over a set period. A company receiving other grants too must make sure it does not exceed the limit.