What is a technology loan?   A too high self-financing demanded from entrepreneurs of processing industry aimed at export, who wish to invest into machinery and equipment with the help of a loan, may turn out to be a problem. Subordinated loan of KredEx intended for technology investments covers the self-financing of a leasing or a loan for the entrepreneur (up to 40% of project cost), and the entrepreneur may invest into technology also if there are not enough free funds for the required self-financing.   What is a technology investment?   A technology investment is an investment into tangible assets and intangible assets accompanying the latter in connection with the expansion of an entrepreneur, variation of production or reorganisation of the whole production process. Tangible assets include machinery and equipment registered as fixed assets, and intangible assets include assets acquired by technological transfer through the acquisition of patent rights, licenses, know-how or unpatented technical knowledge.   Who belong to the target group of the loan?   The target group of the subordinated loan intended for technology investments includes entrepreneurs of processing industry, mining industry, production of electrical energy and waste processing and disposal entrepreneurs with potential of export.   Loan terms    Terms for a loan applicant   the company has been registered in the commercial register of the Republic of Estonia the company has no overdue unpostponed debts the company is sustainable and solvent the equity capital of the company meets the requirements of the commercial code members of the board and owners of the company are reliable and competent the equity capital of the company* and self-financing total at least 50% of the amount of the subordinated loan applied for Recommended financial figures of the loan applicant at the moment of applying for the loan share of the equity capital in the balance sheet is at least 10% the quick ratio is at least 0.8 debt-service coverage ratio is at least 1.1 by conservative evaluation Intended purpose of the loan financing of self-financing for an entrepreneur of a loan or financial lease, if the project is aimed at direct costs** of technology investments and implementation of technology Loan amount up to 2,000,000 Euros, but not more than 40% of the project cost Contract fee none Interest equal to the interest rate of the bank or leasing company issuing the loan/leasing, or 1-2 percentage points higher, depending on the rate of self-financing Issuing of the loan the loan is issued through a bank or leasing company financing the project Repayment of the loan after the end of the bank loan, payment schedule with the same instalments continues     * KredEx may include in the equity capital loans subordinated to the loan of KredEx issued to the entrepreneur ** Direct costs necessary for the implementation of the technology may form up to 20% of the project cost NB! An investment may not be started before the submission of an application to KredEx. The loan is not issued to the following areas of activity and enterprises: primary production of agricultural products, fishery and aquaculture and forestry weapon, coal and tobacco industry steel and synthetic fibre sector acquisition of means of transport and transport devices in transport sector acquisition of non-road mobile machinery and wheel tractors shipbuilding sector for activity connected with export directly related to exported quantities, creation and operation of distribution network or other current expenses based on export, if state aid is provided by issuing of the loan Owners of the enterprise include offshore companies registered in tax-free areas undertakings in difficulty How and from where to apply?   Before turning to KredEx an entrepreneur should turn to a bank or a leasing provider to obtain a decision of their competent authority regarding the issuing of loan/leasing. To submit an application for the technology loan, an application form shall be filled in the web page of KredEx, accompanied by: financial prognoses on KredEx form business plan, including the investment project plan a decision of a credit or financing institution’s competent authority regarding the issuing of loan/leasing report of the most recent financial year balance sheet and income statement of the current financial year, provided that no more than 2 months have passed from the end of the reporting period at the moment of submission of the application CVs of the key persons of the company A loan application shall not be processed, if at the moment of submission of the loan application the equity of a company does not meet the requirements prescribed by the law, or if a company has poor payment practice in payment to creditors and state taxes. Additional information may be obtained from telephone 6674 100 or e-mail address arikliendid[at]kredex.ee.     NB! Services offered by KredEx may contain state aid. An entrepreneur shall inform KredEx of grants received or applied for with a purpose to finance the same project. Technology loan issued within the subordinated loan programme is financed from the European Regional Development Fund in years 2011 to 2015, in the amount of 19,000,000 Euros.