Estonian SMEs to get easier access to loans

The Estonian bank LHV Pank is to offer EU-backed loans to innovative small and medium-sized businesses.

LHV Pank signed an agreement with the European Investment Fund on 17 February. This will allow the bank to grant loans worth €40 million over the next two years, up to 50 per cent of which will be guaranteed by the InnovFin Guarantee.

The InnovFin initiative was launched by the European Commission and the EIF to cover a portion of the losses incurred by financial institutions for loans between €25,000 and €7.5 million. It is hoped this will encourage banks to increase loans for innovative SMEs.