Innovation loan
Fund the development of a new solution all the way to market.
When you develop a new technology, product or service, costs often arise well before the solution starts generating revenue. The EIS innovation loan helps finance exactly this stage of development, from applied research and product development to investment and market entry. This lets you move forward with development even when conventional bank financing does not yet suit the project’s needs, without necessarily having to give up a stake in your company to secure funding.
Innovation means a new or significantly improved product, service or process that has been brought to market or put into use, or that has clear potential to get there. The aim of innovation is to create value and gain a competitive advantage, supporting the company’s development and productivity growth and contributing to wider economic growth.
Solutions are considered innovative when they are new and original, differ significantly from existing solutions, and bring notable progress and new value.
NB! The innovation loan is available to both SMEs and large companies. The project should generally have reached at least Technology Readiness Level TRL5. Principal grace period generally up to 3 years.
The innovation loan can help if you want to:
- develop a new technology, product or service;
- carry out applied research or product development;
- turn a prototype into a market-ready product;
- make the investments needed to deploy a new solution;
- bring a new solution to market;
- fund development without giving up a stake in your company.
Innovation loan webinar
On 29 April 2026 we held a webinar introducing the innovation loan. In the webinar we covered:
- who the innovation loan is designed for
- what it can be used for
- which projects are eligible for funding
- whether your company’s project could qualify for an innovation loan of up to €5 million
What can the innovation loan be used for?
The Innovation loan supports projects with clear innovative value where securing financing may be challenging for the company. It can be used, for example, when a business wants to further develop a new technology, product, or service; invest in production capacity; move a solution to the next development or market phase; or cover costs related to preparing for market entry.
The loan can be used to finance, among other things:
- personnel costs related to the project
- investments in tangible fixed assets
- investments in intangible fixed assets
- working capital needed, for example, for the production and marketing of innovative products
- applied research
- product development
- feasibility studies
- initial investments
- other activities related to the development of products and services
Who is the innovation loan intended for?
The innovation loan is suitable for businesses that meet the following criteria:
- the project is innovative
- the company is creditworthy
- the company’s equity meets the requirements and accounts for at least 10% of the balance sheet prior to receiving the loan
- the company has no outstanding tax arrears
- the project’s technological readiness level is generally at least TRL 5
Service information
The interest rate depends on the risk level and the costs being financed, and is expected to be 5–7% per year. The contract fee is 0.5% of the loan amount. The contract amendment fee is 0.2% of the outstanding loan balance.
The loan period is up to 15 years. A principal repayment grace period of up to 3 years is generally available.
If you wish to repay the loan early, you must notify EIS at least 3 months in advance.
The innovation loan is not granted for financing the following activities and sectors, among others:
- primary production of agricultural products
- primary production in fisheries and aquaculture, and in certain cases the processing and marketing of related products
- forestry
- real estate development for sale or rental purposes
- gambling-related activities
- activities related to pornography
- illegal downloading of data or enabling illegal access to data networks
- research and development activities in healthcare related to human cloning or the development of genetically modified organisms
- production or trade related to illegal products or activities
- business activities involving forced labour or child labour
- trade related to endangered species
- production and distribution of racist, anti-democratic, or neo-Nazi media
- certain operating costs directly related to exports
- the steel, coal, and lignite sectors
- the transport sector and related infrastructure
- energy production, energy storage, energy transmission, energy distribution, and related infrastructure
- the broadband sector
If you are unsure whether your project or activity is eligible, we recommend contacting EIS before submitting an application.
When receiving the loan, the borrower must take into account the following obligations:
- demonstrate that the loan funds are used for their intended purpose
- submit quarterly activity and financial reports to EIS
- obtain approval for taking on additional obligations, making investments, or disposing of assets that exceed the thresholds specified in the loan agreement
How to apply?
The following documents must be included with the application:
- innovation loan application form
- a business plan, including the investment project plan and project objectives
- a detailed breakdown of the costs to be financed
- financial forecasts in a format accepted by EIS
- an interim report for the current financial year, not older than 3 months at the time of application
- CVs of the applicant’s key personnel
- action plan and budget form
- a completed and signed environmental impact questionnaire
