Loan guarantee


A loan guarantee is useful if a company wishes to use a bank loan, a lease or bank guarantee but lacks sufficient collateral or operating history to be issued a loan.
Loan guarantee is also helpful in solving short-term liquidity problems of energy-intensive companies, including retail and wholesale companies.

NB! KredEx surety can only serve as an additional guarantee for a new obligation (bank loan, lease transaction or bank guarantee).

For who?


starting enterprise
established company
exporting company

Service is suitable if

  • the company is creditworthy and
  • the company’s equity capital meets the requirements set forth in the Commercial Code (KredEx may make exceptions if the company was registered less than 3 years ago) and
  • the company does not owe state taxes and has no debt to credit institutions.

Important conditions

Loans will not be issued for the following activities or to the following companies:
  • Primary production of agricultural products, fishing and aquaculture and forest management;
  • Manufacture, processing and marketing of tobacco (and related products);
  • Manufacturing, processing and marketing of weapons and ammunition;
  • Acquisition of vehicles and equipment for road freight transport;
  • Acquisition of vehicles and self-propelled machinery on the basis of an authorization for issuing a guarantee on behalf of KredEx;
  • Financing of circulating capital for retail and wholesale companies. 
  • Real estate development projects for the purpose of sale and leasing out. If real estate development takes place for the purpose of activities unrelated to the company’s own real estate development, including that of subsidiaries and affiliates, it is permitted to let out part of the premises, provided that the receipts from rentals, other than from subsidiaries and affiliates, do not exceed 30% of the loan applicant’s annual turnover;
  • Export-related activities that are directly related to quantities to be exported, establishing and operating a distribution network or other current costs stemming from export activity if the issuing of the guarantee constitutes de minimis aid;
  • Guarantees related to payment of taxes arising from legislation;
  • The applicant’s direct or indirect owners include companies registered in tax havens;
  • Decommissioning or establishing nuclear power plants;
  • Investments for reducing greenhouse gas emissions generated in the fields listed in Annex I of directive 2003/87/EC
  • Investments into airport infrastructure other than in a case where the investments are related to environmental protection or investments related thereto are necessary for alleviating or reducing the unfavourable environmental impact of airport infrastructure;
  • Companies operating in the field of gambling;
  • The objective of financing is the use of domestic products instead of import products;
  • Fields related to pornography, gambling, unlawful download of data and enabling unlawful access to data networks;
  • Research and development activity in the field of healthcare, the goal of which is to clone humans or develop genetically modified organisms for research or medical purposes.
Extent of guarantee:

Up to 80% of the assumed obligation; as an exception, in the amount of up to 60% for the construction sector.

The amount of the guarantee decreases as the amount of the loan or lease decreases

Amount of guarantee:
  • Small or medium-sized enterprise: up to EUR 5 million. Additional conditions applied to the amount of a guarantee exceeding EUR 2 million
  • A large enterprise: up to EUR 1.5 million
Guarantee fee:
  • For an investment loan, working capital loan, overdraft, revolving credit limit (RCL), leasing and bank guarantee 0.8 to 3.8% of the guarantee balance per year
  • For a bank guarantee limit 0.5% to 3.8% of the guarantee balance per year
Contract fee:

The fee depends on who draws up the decision to grant the guarantee and the guarantee contracts

  • bank: 0.5% of the amount of the guarantee, min EUR 30
  • KredEx: 1% of the amount of the guarantee, min EUR 30
The loan applicant’s recommended financial indicators:
  • The debt-service coverage ratio (DSCR) should be at least 1.2 after the issue of the loan, according to conservative estimates
  • Current ratio of at least 1.1
  • Equity capital makes up at least 20% of the balance sheet volume after the obligations to be assumed
Additional conditions applying to a surety exceeding EUR 2 million:

1.New projects carried out by SMEs related to the following may be financed:

1.1founding of a company;

1.2expansion of the company;

1.3 strengthening the company’s ordinary activity;

1.4 implementing a new project;

1.5 entering new markets;

1.6 new developments at an existing company;

2. Starting from the issue of the loan until the repayment of the loan, the company must be registered in Estonia and its economic activity for which the loan was issued must take place in Estonia.

3. Projects that have not ended or been completed as of the making of the KredEx guarantee decision are eligible.

4. Activities (expenses) that may be financed in the case of projects:

4.1 investments into non-current assets;

4.2 circulating capital if it makes up a part of the project specified in clause 1;

4.3 expenses on acquisition of proprietary rights (upon transition of company) if the transaction takes place between independent investors and makes up a part of the project specified in clause 1;

4.4 expenses on acquisition of registered immovables with or without buildings, on condition that the guarantee loan amount is not greater than 10% of the acquisition cost of the immovable;

4.5 expenses on investments into infrastructure which contribute to urban development or revitalization of cities, on condition that the guarantee loan amount is not greater than 20% of the investment.

5. The guarantee may not be used for bridge financing of support financed from European Union funds or for financing the manufacturing, processing and marketing of weapons or ammunition.

Exceptions to loan guarantee terms: Annex 2
If the activity of an undertaking has been negatively affected by Russia’s attack on Ukraine, sanctions and economic counter-measures imposed by the European Union or its international partners against the sanctioned parties, as well as an increase in energy prices, the Foundation has the right to apply the exceptions set out in Annex 2 in the issuance of sureties in accordance with the Temporary Crisis Framework for State Aid.

The exact terms of Annex 2
can be found here.

Guarantee applications under Annex 2 are accepted until 30 November 2023.

Good to know

  • You can find more information about the crisis measures intended to alleviate liqiuidity difficulties caused by the COVID-19 outbreak ON THIS PAGE
  • The services provided by KredEx may include state aid, including de minimis aid.
  • Find out more about Enterprise Estonia’s services for businesses here

Application process

Contact a bank or leasing company to utilize the loan guarantee. To obtain the guarantee, the bank or leasing company will apply to KredEx. Depending on the guarantee amount and the complexity of the project, the guarantee decision may take up to four weeks.

If necessary, KredEx will contact you

Contact us

Jaak Tikko

Jaak Tikko

Client Manager

jaak.tikko [at]
Tiina Kalme

Tiina Kalme

Client Manager

tiina.kalme [at]
Argo Suurkask

Argo Suurkask

Client Manager

argo.suurkask [at]
Karmen Piip

Karmen Stepin

Junior Client Manager

karmen.stepin [at]