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InnovFin collateral

A guarantee for enterprises for the financing of development and innovation

  • Loans in the range of €250,000 to €7,500,000 are guaranteed
  • The guarantee covers 50% of the loan sum
  • Loan period of 1–10 years
  • Loan contracts are supported by the InnovFin SME Guarantee Facility, with the financial backing of the European Union under Horizon 2020 financial instruments

Purpose of the guarantee

The purpose of the guarantee is to encourage credit institutions to grant loans with the support of the European Union to enterprisers with up to 500 employees who need capital for the funding of research, development and innovation.

The agreement enables LHV Pank to issue loans in the amount of €40 million until 31 March 2018, to innovative Estonian enterprises with the support of the guarantee

The guarantee can be applied for by enterprises who:

  • invest into the production and development of innovative products, services or procedures;

  • are growing rapidly, so that their number of employees or turnover has grown at least 20% in the past three years;

  • have great innovation potential or are research- and development-intensive enterprises.

LHV Pank is the first and only credit institution in Estonia that the European Investment Fund (EIF) has chosen as an intermediary for the InnovFin guarantee.

Price list and terms and conditions

Extent of the guarantee
  • 50% of the loan sum
  • Loans in the range of €250,000 to €7,500,000 are guaranteed
  • Loan period of 1–10 years
  • The extent of the guarantee is reduced during the term of the loan agreement in proportion to the decreasing of the loan amount.
Loans guaranteed
  • Investment loan
  • Working capital loan
  • Investment loan for acquiring a holding on the condition that the share of self-financing is at least 50% and the money is used to acquire a company that corresponds to at least one of the eligibility criteria for the financing of innovation.
  • For the refinancing of existing loans, on the condition that the company meets at least one of the eligibility criteria for the financing of innovation.
Fee for the guarantee
  • 0.5% of the guaranteed sum per year on the condition that the applicant is a small or medium-sized company
  • 0.8% of the guaranteed sum per year when the applicant has 250 to 499 employees
Requirements for the recipient of the guarantee
  • The company is less than 12 years old
  • The company is creditworthy and its equity corresponds to the requirements provided in the Commercial Code
  • The company does not have any overdue and untimed payments of state taxes or debts before credit institutions
  • The company meets at least one of the eligibility criteria for the financing of innovation
  • Guarantees are not given to loans for enterprises in the real estate development and construction sector
The eligibility criteria of the financing of innovation

The company must correspond to at least one of the following criteria:

  • Investments for the development of a product or service involving the threat of technological or industrial failure

  • A rapidly growing enterprise that has been operating on the market for less than 12 years and whose turnover has increased faster than 20% per year in the past three years, and that employed at least 10 people at the beginning of the observation period
  • An enterprise that has been operating on the market for less than 7 years and whose costs on research and development comprise at least 5% of the operational costs in at least one year in a three-year period
  • The company has previously received support from the European research and development programmes (e.g. Horizon 2020) or national support programmes targeting research and development in the past three years and on the conditions that the filed credit application does not cover the costs of the said grants, loans and guarantees
  • The company has received research and development or innovation awards from a European Union institution or organisation in the past two years
  • The company has registered at least one patent or utility model in the past two years and the loan will be used for offering the product or service protected with the patent
  • The company is a small or medium sized enterprise in the early stages of development, and has received a venture capital investment in the past two years, or there is a venture capital investor or an investment angel belonging to the said network of investors among the owners of the enterprise
  • The company’s expenditure on research and development comprises at least 15% of the total operational expenditure in a year, or 10% annually in a three-year period

Contact

Indrek Nuume

Member of the Management Board / Head of Business Banking

680 2622

680 2622

indrek.nuume@lhv.ee

Arko Kurtmann

Head of Business Banking Department

680 2766

680 2766

arko.kurtmann@lhv.ee

Egon Rand

Business Client Manager

680 2768

680 2768

egon.rand@lhv.ee

Krislin Lehtsaar

Business Client Manager

680 0466

680 0466

krislin.lehtsaar@lhv.ee

Marin Moks

Business Client Manager

680 2706

680 2706

marin.moks@lhv.ee

Urmas Tsahkna

Head of Corporate Banking

680 2752

680 2752

urmas.tsahkna@lhv.ee

Meelis Liivak

Corporate Client Manager

680 2761

680 2761

meelis.liivak@lhv.ee

Jürgen Raag

Corporate Client Manager

680 0446

680 0446

jurgen.raag@lhv.ee

Anu Sillari

Business Client Manager

684 6144

684 6144

anu.sillari@lhv.ee