An Entrepreneur Loan is a personal loan granted to an entrepreneur. Loans can be granted to several founders or shareholders in the same enterprise.
Before making a decision on your loan, Finnvera carries out a business analysis to establish whether your enterprise has the potential for profitable operations. We assess your targets, strategies, development plans and the market situation. A business plan will speed up the handling of your loan application.
Terms and conditions of the Entrepreneur Loan
The target enterprise may operate in any sector except farming, forestry or building developer’s business. The enterprise must meet the criteria set by the EU for SMEs, and it must have the prerequisites for a profitable business.
The maximum loan per borrower is 100,000 euros. The borrower must personally put up a self-financing portion of at least 20 per cent.
The loan period is a maximum of 10 years. On a case-by-case basis, one or two instalment-free years may be used at the beginning of the loan period.
A borrower for an Entrepreneur Loan must
- be a shareholder in a limited company who holds at least 20% of the share capital and related votes after completion of the investment or the transaction financed by the loan,
- work in the company or another company belonging to the same group, in accordance with the Limited Liability Companies Act.
The borrower’s personal finances must also be in good order.
The price of the Entrepreneur Loan
The interest rate is the 6-month Euribor plus 3,25% margin. A handling fee is charged on the loan.