EIF and Enterprise Estonia unlock €109 million to support local businesses with affordable financing

• Enterprise Estonia (EIS) has signed a landmark agreement with the European Investment Fund (EIF), unlocking €109 million in financing to support Estonian businesses with more favorable loans and guarantees.

This strategic partnership aims to channel investments into key areas such as the green and digital transitions, innovation, and social inclusion. The agreement will enable EIS—legally known as the Estonian Business and Innovation Agency—to offer enhanced financial services by sharing risk with the EIF, making it easier and more affordable for small businesses to access funding.

“Making loans and guarantees more accessible and affordable is undoubtedly good news for our businesses, putting EU funds to work to stimulate the economy,” said Erkki Keldo, Minister of Economic Affairs and Industry.

EIS will provide financing to SMEs and microbusinesses in Estonia on advantageous terms including relatively lower interest rates, and companies that do not have sufficient collateral will find it easier to access financing. The support by the EIF, which is part of the European Investment Bank (EIB) Group, comes through the European Union’s InvestEU programme which simplifies access to EU funding and strengthens the resilience of Europe’s economy.

“With EU funds, we can offer companies improved loan and guarantee conditions. EIS’s role is to step in where there is market failure—it is crucial that the financial solutions we offer support businesses when commercial banks find the risks too high,” added Kaarel Aus, Head of the Loans and Guarantees Department at EIS.

Virtually all Estonian businesses stand to benefit, as SMEs make up 99% of the country’s independent economic units.

“This agreement with Enterprise Estonia is a powerful example of how EU resources can be transformed into real opportunities for businesses on the ground,” said Marjut Falkstedt, Chief Executive of EIF. “By improving access to finance for Estonian SMEs, we are not only supporting entrepreneurship but also driving innovation and sustainable growth across the region.”

Under the initiative, EIS will, for example, direct loans to Estonian SMEs with green objectives, such as upgrading manufacturing processes to meet EU environmental standards and reducing energy consumption through new technologies.

This partnership marks a significant step forward in strengthening Estonia’s business ecosystem and ensuring that innovation and sustainability remain at the heart of its economic growth.

Background information

About the EIF

The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s small and medium-sized enterprises (SMEs) by helping them access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF furthers key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability, and more. In Estonia, commercial banks such as Swedbank, SEB, LHV, Luminor, and Citadele have previously entered into similar agreements with EIF.

About InvestEU programme

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment. 

About EIS

Enterprise Estonia, legally Estonian Business and Innovation Agency (EIS), aims to increase Estonia’s international competitiveness, foster entrepreneurship, and improve the living environment. Over the years, it has facilitated more than €2.2 billion in additional funding for businesses.

Press contacts

EIB Group

Kristiina Randmaa

M. +352 4379 72894, e-mail:  k.randmaa@ext.eib.org
Website: www.eif.org — press@eib.org

EIS
Kasper Elissaar
M. +372 5885 6269, e-mail: kasper.elissaar@eis.ee
Website: eis.ee/en – press@eis.ee