New cooperation with the Estonian Business and Innovation Agency makes growth financing faster and more accessible for small businesses.
Small and medium-sized enterprises (SMEs) in Estonia now have a faster and more flexible way to access growth financing, thanks to a new partnership between Finora Bank and the Estonian Business and Innovation Agency (EIS). With EIS guaranteeing up to 80% of the loan amount, businesses can secure significantly larger loans with reduced collateral requirements and fewer bureaucratic steps.
Finora Bank, Estonia’s newest bank, founded by local entrepreneurs and operating in both Estonia and Lithuania, began offering loans under EIS’s portfolio guarantees in April. The initiative is designed to improve access to finance for most Estonian businesses.
Mangirdas Kireilis, Head of Finora Bank’s Estonian branch says: “The portfolio guarantee from EIS is much more flexible than individual guarantees and makes the process significantly faster. It allows us to support more creditworthy SMEs, including those with limited collateral or seeking higher amounts. What’s more, the process is streamlined, businesses apply directly with us, without needing to contact EIS or handle additional documents. It’s a practical step toward reducing bureaucracy and supporting real business needs.”
Kaarel Aus, Head of Loans and Guarantees at EIS, highlighted the importance of the partnership: “With this guarantee instrument, we’ve made it easier for banks to offer financing to micro and small businesses. We’re pleased that Finora Bank is now bringing this solution to Estonian entrepreneurs.”
The guarantee is available to creditworthy SMEs that meet equity requirements, have no overdue or unresolved debts, and have filed the required data with the Business Register. The guarantee covers up to €200,000, which means eligible businesses can borrow up to €250,000 with significantly lower collateral.
Under EU definitions, SMEs are companies with fewer than 250 employees and annual revenue under €50 million or a balance sheet total below €43 million. “That means more than 99% of Estonian companies fall into this category,” added Kireilis. “This cooperation opens doors for nearly every small business in Estonia to grow more confidently.”
EIS (formerly KredEx) has already helped enable over €2.5 billion in guaranteed loans. The current portfolio guarantee program is backed by the European Regional Development Fund.
Finora Bank, majority-owned by Estonian entrepreneurs, grew its loan portfolio by 39% last year and increased total assets by 61%. The bank offers a full range of business financing services.