Good news from Finnvera: popular loan application period extended

Finnvera says it will extend the application period for its loan aimed at the growth of micro and start-up businesses beyond the end of July indefinitely. The decision is driven by what Finnvera describes as “a clear need for financing, particularly among start-up businesses, where getting growth off the ground often requires external funding”.

The loan is designed to help early-stage businesses get off the ground and accelerate their growth. The application period is being extended because the smallest businesses find it difficult to obtain financing from commercial lenders.

The eligibility criteria for the microbusiness loan remain unchanged. Finnvera says the loan can be applied for when a company has a viable idea and a business plan but has not been able to secure market-based funding for its project.

“New businesses currently have a clear need for financing. By extending the application period, we can better respond to that need in the current market conditions and ensure that growth opportunities are not left unrealized due to a lack of funding. At the same time, it is important that businesses first explore their options for bank financing,” Elisa Sipponen, Finnvera’s Chief Financial Officer, says.

Read more about the loan here.

Over half sole traders

The loan, which focuses on start-up and growth projects for microbusinesses, has got off to the expected start. In the first three months, almost 500 applications were submitted and €6.9 million in loans issued. Demand peaked in February, after which the number of applications levelled off. Over half of the companies that were issued loans were founded less than three years ago.

Finnvera says 65% of the companies plan to hire new employees with the help of the funding. The financing granted so far is estimated to create as many as 165 new jobs in the future. Over half of the companies that received financing are solo entrepreneurs, and 63% of those plan to hire their first employee with the help of the loan. One in five of the companies that were issued loans is targeting international markets.

“The loan for microbusiness growth is available through the normal application process and there is no need to rush. It is worth applying when a company has a clear plan and a genuine need for financing to accelerate growth. That way, the financing best serves the development of the business and supports the achievement of its goals,” Elisa Sipponen says.

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