Does the financing, in which the Loan Guarantee Fund pays the bank interest on the money after the first year, cause the project owner to fall into usury?

The ruling on the prohibition of an interest-bearing loan does not differ whether the one paying the forbidden interest is the borrower or an external party, as long as the benefit is stipulated in the loan contract and accrues to the lender; because every loan that draws a benefit is usury (riba).

This increase cannot be considered as fees for actual loan services, because fees tied to the amount of the sum are not considered service fees; rather, they are usurious increases.

However, if the one paying the increase and the one receiving it have a single legal entity, such as a bank and the government, then there is no harm in this loan; because usury does not apply when the legal entity is one.

In summary, a loan in which an increase is stipulated – even if it is small – is considered a forbidden usurious loan, even if a third party undertakes to pay that increase.