Counter-cyclical Guarantee

The Counter-cyclical Guarantee is intended for enterprises whose profitability or liquidity declined because of the unfavourable economic situation and that faced difficulties in obraining financing. A prerequisite for granting a guarantee is that the enterprise has the potential for profitable business once the economic situation improves.

A Counter-cyclical Guarantee is granted for financing working capital and investments. It can serve as security for an ordinary loan based on a promissory note, a loan given by a pension insurance company by virtue of the Employees Pensions Act, an account with an overdraft facility, and for an individual bank guarantee or a bank guarantee limit. The guarantee period, and the maturity of the guaranteed credit, is 2–10 years. A Counter-cyclical Guarantee may be granted as security for loans that help an enterprise raise its working capital and improve its liquidity or that are used to finance investments. The guaranteed credit cannot be used for repaying old loans or other commitments to Finnvera or other financiers. 

Counter-cyclical Guarantees are intended for companies employing at most 1,000 people within the corporate group. The total amount of Counter-cyclical Loans and Guarantees cannot exceed EUR 10,000,000 per enterprise.

For special reasons, a Counter-cyclical Guarantee can also be granted for companies with over 1,000 employees. In this case, the total amount of Counter-cyclical Loans and Guarantees can be even higher than that mentioned above.

Special reasons for financing a company with over 1,000 employees:

• The company’s operations have considerable strategic significance due to maintenance reliability or another similar reason, or
• The company’s operations have, in addition to other benefits, considerable significance for the general employment situation in the area, and
• The company’s operations, when estimated as a whole, involve a significant national interest.
• A further precondition related to the company’s financial standing is that the matter is not about a structural change that has commenced before the weakening of the trade cycle.

By virtue of the EU rules on State aid, Finnvera can guarantee at most 80 per cent of a loan or other commitment granted by some other financier.

Before Finnvera notifies that a Counter-cyclical Guarantee has come into effect, the principal financiers must give a written commitment on the provision of additional funds to the enterprise and/or on the rescheduling of the enterprise’s financing for at least one year. Rescheduling means grace periods, extensions of the credit period or lower interest rates.

See also
Counter-cyclical Loan

Applications and attachments
Online application (opens in a new browser window)
Printable application (pdf)
Send the printed application by post to the Finnvera Regional Office nearest to you.

Brochure (PDF)