Credit for the production of dual-use products in Poland

Today’s economic and geopolitical challenges make investing in technologies useful in both the civilian market and the defense sector an absolute priority. Therefore, under the European Funds for Modern Economy (FENG) program, a completely new support instrument for entrepreneurs has been planned, operated by Bank Gospodarstwa Krajowego (BGK).

Although the official name of the instrument is “Credit for the production of dual-use products”, in practice this mechanism works as a non-repayable cash grant for the production of dual-use products, which serves to repay the capital of the loan taken out by the beneficiary to finance the planned investment.

The next call for proposals is scheduled for October 29, 2026, to January 28, 2027. If you want to check whether your company can apply for a credit for the production of dual-use products in Poland, schedule a free consultation with a specialist.

What projects have a chance of receiving a credit for the production of dual-use products in Poland?

To be eligible for funding, a project must involve an initial investment in the production of dual-use products — products that can be used for both civilian and military purposes. Products with exclusively civilian or exclusively military applications are not eligible for funding.

The manufactured product must fall within the categories and subcategories defined in Annex I to Regulation (EU) 2021/821 of the European Parliament and of the Council. These are products, software, and technologies that are primarily intended for civilian applications, but whose technical parameters also allow for advanced military and security applications (dual-use). These include, among others, special materials, materials processing, electronics, computers, telecommunications and information security, sensors and lasers, navigation and avionics, marine equipment, and space and propulsion systems.

As part of the competition, it will be assessed whether the entrepreneur has adequately justified the market demand for the product for civilian applications and indicated the use of the product for military purposes.

It should be clearly emphasized that credit for the production of dual-use products in Poland offered by BGK under this measure does not finance any research and development (R&D) work. The submitted product must be fully ready for mass production at the time of application submission.

The project may involve the creation of a new plant, increasing the production capacity of an existing plant, diversifying production by introducing previously unmanufactured products, or fundamentally changing the overall production process.

Who can apply for a credit for the production of dual-use products in Poland?

The credit for the production of dual-use products is addressed exclusively to SMEs operating in the territory of Poland.

The applicant must be registered with the National Court Register (KRS) or the Central Registration and Information on Business (CEIDG) at least 12 months before submitting the funding application. An exception is a special purpose vehicle (SPV), where the requirement of at least 12 months of registration applies to its parent company.

What are the conditions for obtaining a credit for the production of dual-use products in Poland?

An additional basic requirement to be met in order to apply for a credit for the production of dual-use products in Poland is to confirm creditworthiness by obtaining a loan promise from a commercial bank (on the list of banks cooperating with BGK) or by concluding a conditional loan agreement.

Full and transparent regulation of intellectual property rights for the commercialized solution is also required. It is necessary to document that the company has the R&D results, copyrights, patents, or licenses necessary for production.

Projects that involve innovative products (at least compared to those already available on the market), with export potential, and planned production automation are promoted. However, these aspects are not mandatory in the project evaluation process, meaning their absence does not automatically exclude a project from receiving funding.

Additional points are awarded during project evaluation for, among others, membership lasting at least 6 months in the National Key Cluster or participation in acceleration initiatives under the patronage of the Ministry of National Defence (such as NATO DIANA, IDABootCamp, Miltech).

Budget for credit for the production of dual-use products in Poland

The budget for the call for proposals is PLN 400m (with a possible reserve option to increase this sum). For a project to be eligible for evaluation, the minimum value of eligible costs must be at least PLN 2 million, and the maximum value of eligible expenses cannot exceed the equivalent of EUR 50 million.

The maximum intensity of the awarded funding can reach 70% of the project’s eligible costs, in accordance with the applicable regional aid map. This means that the highest funding intensity is available to micro and small businesses investing in eastern Poland, as well as in selected locations in the Łódź and Małopolska Voivodeships.

Investments located in Warsaw and neighboring municipalities are entirely excluded from the possibility of obtaining funding.

It’s important to emphasize once again that, despite its official name suggesting a form of debt, the instrument in question is ultimately non-repayable. The credit for the production of dual-use products in Poland serves as a premium from BGK, repaying a specific portion of the capital of a previously taken out investment loan from a cooperating bank.

Eligible costs – what can be financed with a credit for the production of dual-use products in Poland?

The basic requirement for qualifying expenditures for dual-use credit is demonstrating a link to the production process of individual project products or the necessity of the expenditure to ensure the effective production of individual products under real-world conditions. In both cases, the justification for the expenditure must clearly demonstrate a link to the production of specific products included in the project.

The credit for the production of dual-use products enables financing of, among others, the following categories of investment expenditure:

• Purchase of fixed assets, e.g. machines, industrial robots, factory equipment and technological lines.
• Necessary construction works and installation materials, and thus it is possible to finance the costs of building a production building from scratch.
• Purchase of land: developed and undeveloped plots on which the infrastructure in the project will be located (expenditure limited to 10% of the total eligible value of the project).
• Intangible assets (ITA), e.g. in the form of patents, licenses, know-how and other intellectual property rights, from third parties on market terms.

The project may include investment expenditures for renewable energy sources (RES) and associated infrastructure (cables, etc.), but these cannot exceed 50% of the total eligible expenditure. Furthermore, the RES installation must be used only for needs directly related to the applicant’s internal operations and to the extent necessary for project implementation, i.e., the production of dual-use products envisaged in the project. Therefore, the installation’s size should be correlated with the demand for this production, and a maximum of 20% of the energy (based on an ex-ante analysis) may be resold.

The final date for eligibility of project expenditure is December 31, 2030.

Until when can applications for a credit for the production of dual-use products be submitted?

Calls for proposals for credit for the production of dual-use products in Poland planned by BGK opens on October 29, 2026 and will operate until January 28, 2027.

It is recommended to start working on applying for funding as soon as possible, taking into account that the application for funding must be accompanied by a bank promise obtained from the bank after conducting a creditworthiness check, and the entire process in this regard may take from several to a dozen or so weeks.

The project can be started after submitting an application for funding to BGK.

Invest in the future – take advantage of a credit for the production of dual-use products today!

A credit for the production of dual-use products in Poland is an important form of support for companies seeking to actively participate in the military and civilian supply chains. The conditions for granting aid may seem straightforward, but investors may encounter numerous uncertainties when applying for and then settling public support. Therefore, the application process requires careful preparation, which I can assist with. Given the limited application period and the extensive documentation and information required, potential applicants should familiarize themselves with the detailed requirements and begin preparing their applications as soon as possible.

Last updated: September 10, 2026
The article was prepared by Grzegorz Kokoszkiewicz – licensed tax advisor (entry no. 11907).
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