Counter-cyclical Loan

The Counter-cyclical Loan 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 this financing is that the enterprise has the potential for profitable business once the economic situation improves.

A Counter-cyclical Loan can be granted for working capital and for financing investments. Counter-cyclical Loans cannot be used for repaying old loans or other commitments to Finnvera or other financiers.

Counter-cyclical Loans are intended for companies employing at most 1,000 people within the corporate group. The credit period of the loan is 2–6 years, which may include 1–3 years of grace. The total amount of Counter-cyclical Loans and Guarantees cannot exceed EUR 10,000,000 per enterprise.

For special reasons, a Counter-cyclical Loan can also be granted for companies with over 1,000 employees. In this case, the total amount of trade 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.

Counter-cyclical Loan’s share of financing is at most 50–70%. For a special reason it could be higher if, for example, the financed company is small or the amount of financing is small. Before Finnvera disburses a Counter-cyclical Loan, 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 Guarantee

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)