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Bridge financing for the period preceding the payment of grants

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Bridge financing for the period preceding the payment of grants

Bridge financing means a loan granted by Finnvera to meet a company’s need for working capital during the period between a positive grant decision made by Business Finland and the actual payment of the grant.

The grants are transferred to a blocked account to be used to repay Finnvera's loan.

Bridge financing can only be applied for if no advance will be paid on the grant.

Terms and conditions of the bridge financing

A prerequisite for a loan by Finnvera is a valid positive grant decision from Business Finland. Therefore the Bridge Financing decision will always be made after the grant decision. The minimum amount for the loan is EUR 50.000 and the maximum loan sum is 70% of the grant that has not been paid yet; however, not more than EUR 500,000.

The grants are transferred to a blocked account opened by your company. The terms and conditions governing the use of the account must be approved by Finnvera. When accepting the grant offer ask Business Finland to pay the grant to the above-mentioned account and to send an email to Finnvera confirming the account as the payment account.

You must repay the Finnvera loan using the grants on the blocked account on the date on which you receive them. Please note that you must pay the loan capital and interest to Finnvera by no later than the due dates specified in the promissory note, even if the sums transferred to the blocked account were insufficient for paying the loan capital and interest.

The final terms of financing will be specified according to Finnvera's financing decision. Finnvera loans must be provided with collateral in accordance with normal collateral practice. EU Rules on state aid may raise the price of the bridge financing.

Applying for the bridge financing

Apply financing through Finnvera’s Online Service. The financing applicant who authenticates oneself in our online service must be a person in charge at the company and have the authority to sign on behalf of the company, or be the owner of a company being established. The company’s contact person named in the financing application can be any of the aforementioned or a company employee who has been given a power of attorney.

Read more about applying for financing