Innovation Loan (Innovatsioonilaen)
Offers research teams and institutions for Innovation Loan Continuous in artificial intelligence, biotechnology, and climate technology.
The Innovation Loan (Innovatsioonilaen) is a concessional debt instrument operated by Ettevõtluse ja Innovatsiooni Sihtasutus (EIS), Estonia's state development agency, providing continuously available financing for Estonian companies pursuing innovation at Technology Readiness Level 5 or above. EIS lends directly rather than granting funds: the borrower receives capital and must repay the full principal. The instrument finances applied research, product development, feasibility studies, tangible and intangible asset acquisition, working capital, and market entry preparations.
Loans are available up to €5,000,000 per project, with repayment periods of up to 15 years and a principal deferral window of up to 3 years before repayments begin. The interest rate starts at 2.0% per annum for initial investments, applied research, product development, and feasibility studies; other activities are priced by applicant risk profile. Additional fees include a 0.5% contract fee on the loan amount and a 0.2% modification fee on the outstanding balance if terms change. Applicants must be profit-seeking companies registered and operating in Estonia, must hold equity equal to at least 10% of their balance sheet, and must have no outstanding tax arrears. All company sizes are eligible; there is no sector restriction beyond the TRL5 threshold.
Applications are submitted digitally at any time via the EIS financial portal at finants.eis.ee — there is no fixed deadline or competitive round. Required documentation includes a business plan, financial projections, an environmental impact questionnaire, and a digitally signed application form. Because this is a loan rather than a grant, applicants should model full repayment into their project economics before applying. EIS also offers complementary instruments such as the Company Development Program (grants up to €500,000) and the Eurostars program (up to €500,000 for R&D partnerships), which can be combined with the Innovation Loan for staged financing strategies.
Concessional loans up to €5M for Estonian companies financing innovative projects at TRL 5 or above, including applied research, product development, and market entry.
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