Capital loan
Fund your company’s growth even when a bank loan alone is not enough.
If your business model works and you are facing major growth, expansion or investment, conventional bank financing may not be enough. The EIS capital loan gives your company additional capital to fund its next stage of development, and it can be used either alongside bank financing or without it. This way, the owners do not have to put all the extra money into the company themselves or necessarily bring in a new investor.
NB! The capital loan suits companies with a proven business model and clear development potential. Grace period on the principal for up to half of the loan period.
Amount of loan
Up to €7.5 million;
up to €15 million with reinsurance
up to €15 million with reinsurance
Loan period
Up to 12 years,
early repayment and refinancing allowed
early repayment and refinancing allowed
Interest
Generally 4–10%
Contract fees
1% of the loan amount
Status
Open
The capital loan can help if you want to:
- rapidly scale up your company’s operations;
- make a major investment;
- expand into new markets;
- launch a new line of business;
- raise additional bank financing alongside the EIS loan.
Benefits
Just like an owner, EIS provides the company with capital that can strengthen its own funds in the eyes of other financiers. This makes it possible to raise additional financing, for example a bank loan.
For who?
Service is suitable if
- the loan applicant is registered in the Business Register of the Republic of Estonia, and the required data have been submitted to the register and
- the loan applicant has no outstanding tax debts, according to the Creditinfo payment default report and
- the loan applicant’s equity complies with the requirements set forth in the Commercial Code and
- the loan applicant is sustainable and solvent and
- the loan applicant’s key personnel are trustworthy and competent and
- the loan applicant’s equity is at least 100,000 euros, and the equity ratio in the balance sheet is at least 10% before receiving the loan.
Important conditions
- primary production of agricultural products, fishing, aquaculture, and forestry
- financial and insurance activities
- real estate development projects aimed at sale or rental. If real estate is developed for activities unrelated to real estate development, including for subsidiary and affiliated companies, some areas may be rented out on the condition that rental income, excluding from subsidiary and affiliated companies, does not exceed 30% of the applicant’s annual turnover
- gambling
- activities related to pornography, illegal downloading of data, or enabling unauthorized access to data networks
- scientific or medical research in healthcare with the aim of cloning humans or developing genetically modified organisms
- any products or activities that are illegal under national laws or international conventions and agreements
- production or business activities involving forced or child labor
- trade in wildlife or wildlife products that violate the Convention on International Trade in Endangered Species (CITES)
- production and dissemination of media that is racist, anti-democratic, and/or neo-Nazi
- Up to €7.5 million, but no more than twice the applicant’s equity at the time the loan is issued. If EIS can use reinsurance, the maximum loan amount is €15 million.
- The interest rate consists of a variable and a fixed component. EIS uses the base rate calculated by the European Commission as the variable component. The fixed component depends on the risk level of the company and the project and on the loan collateral, and is generally 4–10%.
- The contract fee is 1% of the loan amount.
- The contract amendment fee is 0.2% of the outstanding loan balance.
- Up to 12 years; early repayment and refinancing are allowed.
- Grace period of up to half of the loan period.
The borrower must notify EIS at least 3 months in advance of the wish to repay the loan early.
- Submit quarterly activity and financial reports to EIS.
- Obtain EIS approval for taking on additional obligations, making investments or disposing of assets above the thresholds set out in the agreement.
Application process
To apply for a capital loan, fill in the capital loan application form at finants.eis.ee.
Attach to the application:
- business plan
- financial forecasts covering at least the loan period
- (audited) annual report for the last completed financial year and an interim report for the current year less than two months old
- CVs of the company’s key personnel
Good to know
- If the company plans to take a bank loan in addition to the capital loan to carry out its business plan, we recommend contacting the bank and EIS at the same time so that the two can coordinate the loan terms.
- Services offered by EIS may include state aid, including de minimis aid. More information is available on the “State aid and de minimis aid” page.
Information and application process
Service is suitable if
- the loan applicant is registered in the Business Register of the Republic of Estonia, and the required data have been submitted to the register and
- the loan applicant has no outstanding tax debts, according to the Creditinfo payment default report and
- the loan applicant’s equity complies with the requirements set forth in the Commercial Code and
- the loan applicant is sustainable and solvent and
- the loan applicant’s key personnel are trustworthy and competent and
- the loan applicant’s equity is at least 100,000 euros, and the equity ratio in the balance sheet is at least 10% before receiving the loan.
- primary production of agricultural products, fishing, aquaculture, and forestry
- financial and insurance activities
- real estate development projects aimed at sale or rental. If real estate is developed for activities unrelated to real estate development, including for subsidiary and affiliated companies, some areas may be rented out on the condition that rental income, excluding from subsidiary and affiliated companies, does not exceed 30% of the applicant’s annual turnover
- gambling
- activities related to pornography, illegal downloading of data, or enabling unauthorized access to data networks
- scientific or medical research in healthcare with the aim of cloning humans or developing genetically modified organisms
- any products or activities that are illegal under national laws or international conventions and agreements
- production or business activities involving forced or child labor
- trade in wildlife or wildlife products that violate the Convention on International Trade in Endangered Species (CITES)
- production and dissemination of media that is racist, anti-democratic, and/or neo-Nazi
- Up to €7.5 million, but no more than twice the applicant’s equity at the time the loan is issued. If EIS can use reinsurance, the maximum loan amount is €15 million.
- The interest rate consists of a variable and a fixed component. EIS uses the base rate calculated by the European Commission as the variable component. The fixed component depends on the risk level of the company and the project and on the loan collateral, and is generally 4–10%.
- The contract fee is 1% of the loan amount.
- The contract amendment fee is 0.2% of the outstanding loan balance.
- Up to 12 years; early repayment and refinancing are allowed.
- Grace period of up to half of the loan period.
The borrower must notify EIS at least 3 months in advance of the wish to repay the loan early.
- Submit quarterly activity and financial reports to EIS.
- Obtain EIS approval for taking on additional obligations, making investments or disposing of assets above the thresholds set out in the agreement.
To apply for a capital loan, fill in the capital loan application form at finants.eis.ee.
Attach to the application:
- business plan
- financial forecasts covering at least the loan period
- (audited) annual report for the last completed financial year and an interim report for the current year less than two months old
- CVs of the company’s key personnel
- If the company plans to take a bank loan in addition to the capital loan to carry out its business plan, we recommend contacting the bank and EIS at the same time so that the two can coordinate the loan terms.
- Services offered by EIS may include state aid, including de minimis aid. More information is available on the “State aid and de minimis aid” page.