Start-Up Window
GUARANTEE FOR A NEW BEGINNING!
The Start-up Window is a KCGF guarantee scheme designed to support new enterprises in the early stages of development. Operational since 2023 and backed by capital from the World Bank and counter-guarantee support from Sida, this window aims to facilitate access to finance for businesses with up to 12 months of operation from the date of registration.
Starting a business requires capital, knowledge and skills to turn an idea into a sustainable operation. However, new businesses often have a limited financial track record and a more limited ability to secure financing. Through its credit guarantee, KCGF shares a larger proportion of the risk with Registered Financial Institutions, increasing their capacity to finance early-stage enterprises.
In addition to financing, the Start-up Window provides non-financial support through capacity building, financial education, mentoring and networking. It therefore aims to improve access to finance for new businesses, promote entrepreneurship and innovation, and support the development of Kosovo's start-up ecosystem.
WHO CAN BENEFIT?
The Start-up Window is intended for new businesses that meet the basic eligibility criteria and have up to 12 months of operation from the date of registration.
| Criterion | Requirement |
|---|---|
| Business status | Micro, small or medium enterprise |
| Registration | Business registered with the Kosovo Business Registration Agency (KBRA) |
| Ownership | Privately owned |
| Business age | Up to 12 months from the date of registration |
| Number of employees | Less than 250 employees |
| Ownership | Owned by citizens or permanent residents of Kosovo |
| Professional capacity | The owner or owners must have relevant experience, education or training appropriate to the business activity |
| Definition | A start-up is defined as a privately owned enterprise registered with KBRA as an MSME, with up to 12 months of operation from the date of registration. The owne or owners must have experience, education or training appropriate to the business activity. |
| Not considered a start-up | The expansion of an existing business's activities or the merger of two or more existing enterprises. |
GUARANTEE FEATURES
The Start-up Window provides higher guarantee coverage to address the specific risk profile of early-stage businesses and enable financing for working capital and investments.
| FEATURE | TERMS |
|---|---|
| Guarantee coverage | Up to 80% |
| Minimum loan amount | EUR 3,000 |
| Maximum loan amount | EUR 100,000 |
| Maximum guarantee amount | EUR 80,000 |
| Maximum loan maturity | 84 months |
| Loan purposes | Working capital and capital investments |
ADDED VALUE
The Start-up Window creates value for new enterprises that need capital and support at an early stage, as well as for financial institutions seeking to finance businesses with growth potential.
| FOR MSMES | FOR FINANCIAL INSTITUTIONS |
|---|---|
| Improved access to finance at the start-up stage | Reduced credit risk |
| More favourable terms for start-ups | Reduced cost of risk |
| Reduced collateral requirements | Opportunities to expand the loan portfolio |
| Support for working capital and investments | Expanded financing for new businesses |
| Improved financial knowledge, mentoring and networking | Support for financing entrepreneurship and innovation |
The Start-up Window bridges the gap between an idea and financing, helping new businesses progress from the initial stage towards development and sustainability.
HOW THE GUARANTEE SCHEME WORKS
KCGF has no direct contact with borrowers.
Communication with the borrower takes place through the Registered Financial Institution.
Application Process
KCGF operates on the premise that the RFI will conduct an appropriate credit risk assessment and verify the eligibility of the borrower and the loan.To monitor and oversee the performance of each participating RFI, KCGF has developed two monitoring mechanisms: