Capital loan

The target group for EIS's capital loan is fast-growing entrepreneurs with proven business models and strong development potential. The purpose of the capital loan is to finance activities aimed at increasing the entrepreneur’s competitiveness through development or expansion.

Loans will not be granted for the following activities and undertakings:

• 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.

Loan amount

• Up to 7.5 million euros, but not more than double the applicant’s equity at the time of loan issuance.
• If the foundation can access reinsurance, the maximum loan amount is 15 million euros.

Loan period

• Up to 12 years.
• Grace period for repayments of up to half of the loan period.

Interest rate

The interest consists of a variable and a fixed component. The foundation uses the base rate calculated by the European Commission as the variable component. The fixed component depends on the risk level of the entrepreneur and the project, as well as the loan collateral, typically ranging from 4–10%.

Contract fees

• The contract fee is up to 1% of the loan amount.
• he contract amendment fee is 0.2% of the loan balance.

Loan recipient’s main obligations

• Submit quarterly activity and financial reports to EIS.
• Obtain approval for additional obligations, investments, or asset disposals exceeding the thresholds specified in the agreement.

Premature termination of loan agreement:

The borrower must notify the foundation at least three months in advance of their intention to repay the loan early.

• If it is desired to take a bank loan as well as a capital loan in order to fund a business plan, it is advisable to contact the bank at the same time as making the inquiry to EIS so that we can coordinate the loan conditions.
• Find out more about Enterprise Estonia’s services for businesses here.

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