Proceeding from instability in economy and conservatism in financial markets, involvement of long-term financing is a problem for enterprises. Therefore, sustainable investment projects with essential influence to Estonian economy may not be carried out. Moreover, due to decrease in factoring and credit limits and more unfavorable payment terms, enterprises need additional circulating capital.
To ease the problems related to enterprises' long-term financing, KredEx, in cooperation with banks, will offer long-term loans to enterprises. The loan will be issued by a bank.
Who is the target group of the loan?
- enterprise, enterprise group or business project that has been active for at least 3 years
export turnover in the last or current economic year is not less than 20% of the enterprise's total turnover (more than one external buyer recommended). The turnover of subsidiaries of the company, located abroad, are also included in the export turnover.
- enterprise has been entered in the Commercial Register of the Republic of Estonia
- enterprise has no postponed internal payment debts
- enterprise is sustainable and solvent
- enterprise’s equity capital meets the requirements of the Commercial Register
What are the terms and conditions of the loan?
- intended purpose of the loan issued out of the loan resource is the financing of investments and circulating capital, necessary for the development of enterprise
- the loan will be issued with the time limit of 10 years
- repayment holiday enabled for enterprise is up to 3 years
- one enterprise will be issued the loan with the maximum amount of 30 million kroons
- all benefits proceeding from the use of resource must be transferred to borrower; as for credit institution’s margin added to the loan, ordinary margin of similar loan projects by credit institution is guided
- re-financing is permitted if loan terms and conditions become significantly more favorable for the enterprise
- bank has an opportunity to apply for KredEx loan guarantees using ordinary procedures
The loan shall not be issued for the following activities:
- agriculture, fishery, and forestry management;
- weapon and tobacco industry;
- obtainment of transport means and equipment used on road transport
- obtainment of retail and wholesale traders’ stocks, incl. financing of current assets
- real estate project development for hire and sales purposes If real estate development is carried out for own (incl. activities non-related to affiliated and related enterprises) purposes, some of the premises will be allowed to hire out. In that case, hire receipts (excl. from affiliated and related enterprises) may not exceed 30% of the credit recipient's annual turnover.
State aid (Official Journal of the European Union, L379, 28.12.2006 p 0005-0010, Art 1d) is not provided for activities, connected with export, that are directly connected with the exported volumes, creating and operating of the distributive network or with other running costs resulting from exporting.
Where and how to apply?
To obtain the loan, one must have recourse to the bank where the enterprise will pass an ordinary credit eligibility test. Currently the loan can be applied at the offices of UniCredit Bank, SEB Pank, DnB NORD Pank, Swedbank and Marfin Bank.
Offering of long-term loans for enterprises - in cooperation of KredEx and banks - is a measure within the support package targeted to exporting enterprises.
Long-term loan issued in the framework of the additional support-programme of improving the accessibility of entrepreneurs’ loan capital is being financed in 2008–31.08.2015 in the amount of 400 million EEK from the European Regional Development Fund.
.
