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.
NB! EIS surety can only serve as an additional guarantee for a new obligation (bank loan, lease transaction or bank guarantee).
Amount of guarantee
Up to 25 million euros
Extent of guarantee
Up to 80% of the obligation taken
Guarantee fees
0.5–3.8% per annum based on the guarantee balance
Contract fees
Up to 1% of the guarantee amount
Restrictions
Cannot be used for certain activities
Status
Open
Benefits
Loan guarantee helps when the company lacks sufficient collateral or operating history
For who?
Service is suitable if
- the company is creditworthy and
- the company’s equity capital meets the requirements set forth in the Commercial Code (EIS 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
- Primary production of agricultural products, fishing and aquaculture and forest management;
- Manufacture, processing and marketing of tobacco (and related products);
- 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 EIS;
- Financing of circulating capital for retail and wholesale companies;
- Enterprises engaged in financial and insurance activities
- real estate development projects for sale and rental purposes. If the real estate is developed for the purpose of activities unrelated to the real estate development, including that of subsidiaries and affiliates, it is permitted to rent out part of the premises, provided that the rental income, except from subsidiaries and affiliates, does 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;
- Decommissioning or establishing nuclear power plants;
- Investments for reducing greenhouse gas emissions generated in the fields listed in Annex 1 of directive 2003/87/EC8
- 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 to use domestic products instead of imported products;
- Fields related to pornography, illegal data downloading and illegal access to data networks;
- Research and development in the field of healthcare with the aim of cloning humans or developing genetically modified organisms for scientific or medical purposes.
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- Small or medium-sized enterprise: up to €25,000,000
- A credit risk of more than €10,000,000 per enterprise can be taken if the foundation can use reinsurance
Large enterprise: up to €2,250,000.
- Small or medium-sized enterprise: up to €25,000,000
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- Up to 80% of the obligation, with the exception of up to 60% for the construction sector.
- 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.
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- 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
- EIS:
- 0.5% of the amount of the guarantee, minimum €30 for guarantees of up to €520,000.
- 1% of the amount of the guarantee for guarantees over €520,000.
- bank:
- The fee depends on who draws up the decision to grant the guarantee and the guarantee contracts
The bank decides on the amendment of the guarantee and drafts the guarantee contract:
- 0.20% of the balance of the guarantee, minimum €30, if the reason for changing the contract is to increase the guarantee and the obligation secured by it.
- In other cases, there is no fee.
The foundation decides on the amendment of the guarantee and drafts the guarantee contract:
- 0.20% of the balance of the guarantee, minimum €30.
- In the case of changes to technical conditions that do not increase the risk of the contract or to conditions that do not have economic content or are insignificant, the fee for changing the contract is calculated as follows:
the amount or balance of the guarantee - up to €50,000: standard contract change fee;
- over €50,000: €100 + 0.002% of the guarantee amount or balance.
In case of early termination of the contract, the fee is 1% of the balance of the guarantee, minimum €30. The fee is charged if the guaranteed obligation remains valid even after the end of the foundation’s guarantee contract
- 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.
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 EIS. Depending on the guarantee amount and the complexity of the project, the guarantee decision may take up to four weeks.
If necessary, EIS will contact you.
Good to know
- The services provided by EIS may include state aid, including de minimis aid.
Information and application process
Service is suitable if
- the company is creditworthy and
- the company’s equity capital meets the requirements set forth in the Commercial Code (EIS 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.
- Primary production of agricultural products, fishing and aquaculture and forest management;
- Manufacture, processing and marketing of tobacco (and related products);
- 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 EIS;
- Financing of circulating capital for retail and wholesale companies;
- Enterprises engaged in financial and insurance activities
- real estate development projects for sale and rental purposes. If the real estate is developed for the purpose of activities unrelated to the real estate development, including that of subsidiaries and affiliates, it is permitted to rent out part of the premises, provided that the rental income, except from subsidiaries and affiliates, does 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;
- Decommissioning or establishing nuclear power plants;
- Investments for reducing greenhouse gas emissions generated in the fields listed in Annex 1 of directive 2003/87/EC8
- 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 to use domestic products instead of imported products;
- Fields related to pornography, illegal data downloading and illegal access to data networks;
- Research and development in the field of healthcare with the aim of cloning humans or developing genetically modified organisms for scientific or medical purposes.
-
-
-
- Small or medium-sized enterprise: up to €25,000,000
- A credit risk of more than €10,000,000 per enterprise can be taken if the foundation can use reinsurance
Large enterprise: up to €2,250,000.
- Small or medium-sized enterprise: up to €25,000,000
-
-
- Up to 80% of the obligation, with the exception of up to 60% for the construction sector.
- 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.
-
- 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
- EIS:
- 0.5% of the amount of the guarantee, minimum €30 for guarantees of up to €520,000.
- 1% of the amount of the guarantee for guarantees over €520,000.
- bank:
- The fee depends on who draws up the decision to grant the guarantee and the guarantee contracts
The bank decides on the amendment of the guarantee and drafts the guarantee contract:
- 0.20% of the balance of the guarantee, minimum €30, if the reason for changing the contract is to increase the guarantee and the obligation secured by it.
- In other cases, there is no fee.
The foundation decides on the amendment of the guarantee and drafts the guarantee contract:
- 0.20% of the balance of the guarantee, minimum €30.
- In the case of changes to technical conditions that do not increase the risk of the contract or to conditions that do not have economic content or are insignificant, the fee for changing the contract is calculated as follows:
the amount or balance of the guarantee - up to €50,000: standard contract change fee;
- over €50,000: €100 + 0.002% of the guarantee amount or balance.
In case of early termination of the contract, the fee is 1% of the balance of the guarantee, minimum €30. The fee is charged if the guaranteed obligation remains valid even after the end of the foundation’s guarantee contract
- 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.
Contact a bank or leasing company to utilize the loan guarantee. To obtain the guarantee, the bank or leasing company will apply to EIS. Depending on the guarantee amount and the complexity of the project, the guarantee decision may take up to four weeks.
If necessary, EIS will contact you.
- The services provided by EIS may include state aid, including de minimis aid.