Regional loan


A regional loan can be used to provide co-financing for investments in tangible and intangible fixed assets together with a bank or leasing company.

The target group involves small and medium-sized enterprises (SMEs) investing outside Tallinn and Tartu.

NB: A regional loan cannot be used to pre-finance projects financed by the European Union and can only be used to finance projects that have not been fully implemented by the time the financing decision is made.


  • This is a subordinated loan, which helps to increase the project’s self-financing for the credit institution.
  • For the company, self-financing is lower than usual and, in some cases, even unnecessary.

For who?

Ettevõtte rahastamiseks

starting enterprise
established company
exporting company

Service is suitable if

  • the company is sustainable and solvent and
  • the company’s equity complies with the requirements of the Commercial Code and
  • the company’s equity capital and self-financing combined comprise at least 50% of the amount of the regional loan being sought and
  • the company has been entered in the Estonian Commercial Register and has no outstanding and deferred debts and
  • the company’s management board members are trustworthy and competent.

Important conditions


Loans will not be granted to the following activities and entrepreneurs:
  • primary production of agricultural products, fishery and aquaculture, and forestry
  • manufacturing, processing and marketing of tobacco (and related products)
  • manufacturing, processing and marketing of weapons and ammunition
  • acquisition of means of transport and equipment used in road freight transport
  • acquisition of vehicles
  • for real estate development projects for the purpose of selling and leasing. If real estate development is carried out for activities unrelated to the real estate development of the company itself, including its subsidiaries and affiliated companies, it is allowed to lease out part of the premises on the condition that rental income, excluding that from subsidiaries and affiliated companies, does not exceed 30% of the borrower's annual turnover
  • companies engaged in financial and insurance activities
  • gambling operators
  • areas 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
  • the objective of financing is to use domestic products instead of imported products
  • export-related activities directly linked to the quantities exported, the establishment and operation of a distribution network or other current expenditure resulting from export if de minimis aid is granted by the issue of the surety
  • decommissioning or construction of nuclear power plants
  • investments to reduce greenhouse gas emissions generated in the areas of activity listed in Annex 1 to Directive 2003/87/EC8
  • investments in airport infrastructure, unless they are linked to the protection of the environment or are accompanied by investments necessary to mitigate or reduce the negative environmental impact of airport infrastructure
  • mining, production, processing, transport, storage, burning of fossil fuels
  • waste disposal
  • investments to increase the capacity of waste management facilities
  • production of or trade in any product or activity that is illegal under national laws or international conventions and treaties
  • production or business activities using forced or child labour
  • trade in wild animals and wildlife products under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
  • production and dissemination of racist, anti-democratic and/or neo-Nazi media
Requirements for project plan
  • The loan amount may not be used to pre-finance grants financed by the European Union;
  • The project has not been fully implemented by the time the financing decision is made;
  • In the case of land purchases, the cost of the land must not exceed 10% of the cost of the project;
  • The project must not have a significant adverse effect on the achievement of environmental objectives, i.e. it must comply with the ‘do no significant harm’ principle;
  • Climate proofing must be guaranteed in the case of infrastructure investments with a duration of at least five years and a total cost of more than €10,000,000.
  • In the case of projects with a total cost of more than €500,000, the borrower is obliged to set up an information board at the location of the investment or equipment.
Loan amount

Up to EUR 500 000, but not more than 50% of the project cost.

Loan interest

In general, if KredEx finances:

  • up to 20% of the cost of the project, the interest rate is equal to the interest rate of the credit institution;
  • 20,01–30% of the cost of the project, the interest rate is the interest rate of the credit institution + 1 percentage point;
  • 30,01–40% of the cost of the project, the interest rate is the interest rate of the credit institution + 2 percentage points;
  • 40,01–50% of the cost of the project, the interest rate is the interest rate of the credit institution + 3 percentage points.
Loan period

Up to 15 years.

Contract fees
  • There is no fee for the conclusion and early termination of the contract.
  • The contract amendment fee is 0.2% of the outstanding balance, min €60.
Loan guarantee

A separate guarantee is usually not required for a regional loan, or a mortgage or commercial pledge is established as a last resort.

Repayment of loan
  • Until the expiry of the loan contract concluded with the credit institution, the principal instalments of the regional loan are subject to a grace period and only interest is payable.
  • After the expiry of the loan contract with the credit institution, the regional loan will be repaid in equal instalments according to a schedule.


Good to know

  • You can only apply for a loan from KredEx if the bank or leasing company has made a positive financing decision on your application.
  • The services provided by KredEx may include state aid, including de minimis aid. Read more HERE in the ‘State aid and de minimis aid’ section.
  • Read more about the services targeted at Enterprise Estonia HERE.

Application process

In order to apply for a regional loan, first contact your bank or leasing company for a decision on whether to receive a decision on granting a bank loan or lease.

If the decision from the bank or leasing company is positive, a bank officer (generally) fills in the regional loan application (you can enter the e-services environment using your ID-card or Mobile-ID), attaching the following documents:

  • financial projections in a format accepted by KredEx
  • business plan, including the investment project plan
  • decision of the competent body of the bank or leasing company to issue the loan or lease
  • (audited) annual report for the last financial year
  • interim report for the current financial year, which is no more than two months old at the time of submission of the application
  • CVs of the company’s key personnel

Contact us

Jaak Tikko

Jaak Tikko

Client Manager

jaak.tikko [at]
Tiina Kalme

Tiina Kalme

Client Manager

tiina.kalme [at]
Argo Suurkask

Argo Suurkask

Client Manager

argo.suurkask [at]
Marek T

Marek Tiivel

Client Manager

marek.tiivel [at]