FAQ – Financing for primary agricultural production

Finnvera acts as a guarantor for loans, providing a guarantee covering up to 50% of the loan amount. A guarantee may be granted for large investments, such as the construction of new production facilities, the expansion or renovation of existing facilities, or other investments closely related to such production facilities. Finnvera may also provide financing for ownership changes in agricultural enterprises, provided that the other conditions for granting agricultural financing are met.

The minimum project size eligible for financing is EUR 700,000. The project is assessed as a whole, meaning that the total includes not only Finnvera’s financing share but also other sources of financing.

Finnvera's financing is available to agricultural enterprises operating in a company form comparable to a limited liability company. The company must maintain double-entry bookkeeping and be entered in the Trade Register. In addition, the applicant must present a realistic investment plan, demonstrate repayment capacity, and have the prerequisites for continuous profitable business operations.

Finnvera does not participate in:

• the financing of seasonal or working capital needs (e.g. acquisition of livestock, fertilisers or other recurring short-term financing needs)
• the financing of vehicles, transport equipment or other production equipment, unless such financing is directly related to an investment in production facilities
• the financing of the acquisition of arable land, unless it is linked to an investment plan for expanding production
• forestry financing
• investment projects that, as part of the overall financing, include a state guarantee from the Farm Development Fund (Makera)

Yes, provided that the other conditions for granting financing are met. Finnvera may participate in financing ownership changes and generational transfers with a minimum transaction value of EUR 700,000.

Finnvera requires information on the project to be financed, as well as supporting documentation to assess the borrower’s repayment capacity. Submitting the following documents together with the application will facilitate its processing:

• Business plan
• Investment plan or investment calculations
• Profitability forecast
• Financial statements of an operating company for the three most recent financial years, including notes, as well as the latest available information for the current financial year
• A statement of support for the investment project from a contractual partner (e.g. a dairy or meat processing company)

In agricultural financing, Finnvera operates solely on market terms, and the guarantee commission is priced so that it does not constitute state aid. Such projects may not include any other state guarantee.

All financing granted by Finnvera is repayable. In the financing of primary agricultural production, Finnvera acts as a guarantor for loans, with a guarantee covering up to 50% of the loan amount.

An annual guarantee commission is payable, and a service fee is also charged for the guarantee.

A financing partner is always required in the financing arrangement of an agricultural enterprise, as Finnvera acts as a guarantor for the loan.

Finnvera focuses on complementing the financing market in cases involving large and complex projects where existing market-based financing instruments and support schemes are not sufficient.

Finnvera's financing is targeted at investments that have a significant impact on a company’s operations, competitiveness and long-term development. The minimum financing size has been set to ensure that financing is directed to projects:

• where the overall financing requirement is substantial.
• where the financing solution requires cooperation between a bank and Finnvera.
• where Finnvera’s involvement complements other financing and supports the implementation of the project.

The project is assessed as a whole, including any investment grants. The threshold therefore applies to the total investment or arrangement, not only to Finnvera’s share of the financing.

In agricultural financing, Finnvera acts solely as a guarantor for loans in projects of at least EUR 700,000, provided that all conditions for granting financing are met.