Equity funding

(Updated 19.10.2020)

State-owned private equity company Tesi (Finnish Industry Investment Ltd) is prepared to provide further financing to its target companies due to any extraordinary funding needs caused by the coronavirus pandemic.

On April 14, 2020, the state-owned private equity companyt Tesi launched a financing program to ensure the continuation of the operations of medium-sized companies in temporary difficulties due to the coronavirus. The stabilization program will be investing in companies that are able to cope with the financial problems caused by the virus with additional funding. Investments made under the interim program will provide assistance to the corporate liquidity crisis on an accelerated schedule. The investments amount to EUR 1-10 million.

Tesi finances medium-sized companies with a significant employment impact and turnover in Finland through through the program:

  • Turnover at least 10 mill. EUR
  • Number of employees over 50
  • The business has been profitable before the crisis and the conditions for it will continue to exist

Stabilization funding can be applied for through Tesi’s website. The new financing program is to ensure the continuation of the operations of medium-sized companies that  have experienced temporary difficulties due to the coronavirus.  The investments made under the interim stabilization program differ from Tesi’s normal direct investment activities, and provide assistance to the company’s acute liquidity crisis. Depending on the situation, Tesi makes investments either as equity investments or convertible bonds. Investments range from 1 to 10 million euros.

Further information in Finnish:
Tesi on varautunut jatkorahoittamaan kohdeyhtiöitään koronaviruksen mahdollisesti aiheuttamissa ylimääräisissä rahoitustarpeissa.
Tesi käynnistää 14.4.2020 rahoitusohjelman koronaviruksen vuoksi tilapäisiin vaikeuksiin joutuneille keskisuurille yrityksille.

Debt financing

The European Central Bank has decided to offer low interest rate loans to banks if they lend money to SMEs that have ended up in financial difficulties due to the coronavirus. It also facilitates the lending operations of banks by lowering their solvency requirements. The ECB has kept its interest rates unchanged: deposit facility rate at -0.5 per cent and the key interest rate at 0.0 per cent.

Finnvera is prepared for increased financing needs caused by the coronavirus. Finnvera will take a flexible approach to all needs to provide financing due to the coronavirus. They have the resources to increase the financing to SMEs considerably and that way help the companies though the crisis. The company has to fulfil the conditions for profitable operations in the long term.

Finnvera recommends its customers to proceed as follows:

  • Contact your bank as early as possible.
  • Finnvera and banks are taking a flexible approach towards payment arrangements, and such arrangements should be made with the bank as early as possible.
  • Finnvera provides the guarantee to facilitate the working capital granted by the bank.

Finnvera will reduce and simplify the pricing of its guarantees used in working capital financing for the corona situation retroactively from the beginning of March. The annual guarantee commission for the initial Start guarantee, the SME guarantee for companies that have been operating for more than 3 years and the Finnvera guarantee for fast Track will be reduced to a maximum of 1.75%. The delivery fee for the initial guarantee and the SME guarantee will be reduced and will be 0.1% of the guarantee amount in the future. The change applies to the above-mentioned guarantees issued from March 1, 2020, and will be taken into account in the company’s invoicing without separate contact from the customer. In addition, Finnvera will retroactively reimburse the difference in fees to those customers who have already paid a higher guarantee commission or delivery fee. For Fast Track, the delivery fee remains unchanged at approximately EUR 400.

The EU has confirmed an interest rate subsidy program for Finnvera, which will expand its lending opportunities. The guarantee share can be increased to 90 % in bond loans. The price of financing is not affected by the increase in the guarantee share.

Finnvera is expanding the use of SME Guarantee and Start Guarantee to concern also financing required by the economic conditions caused by the coronavirus.
Read more here.

Public enterprise subsidies

Temporary changes to the company’s development grant

Since 15.10. it is possible to get a development grant called “temporary State aid” with a maximum individual amount of EUR 800 000. In addition, the regulation allows this aid to small enterprises that have been in difficulty before 1.1.2020. The changes are temporary and effective from October 19 to December 31, 2020.

More information on the topic here (only in Finnish)

Rural and agricultural and horticultural enterprises

The government has decided to support rural and agricultural and horticultural enterprises with EUR 30 million. An amount of EUR 10 million will be allocated to companies operating in the business sector. In addition, preparations are being made for an increase in the guarantee liabilities of state guarantees for agricultural holdings and for supporting the operating conditions for water supply. More information about this support funding is available under the links-heading on this page.

Fish industry companies

The aid is available to companies in the fisheries sector whose financial situation has significantly weakened due to the coronavirus epidemic after 31 December 2019. The purpose of the grant is to ensure the continuity of business during significant market and production disruptions due to the epidemic.

Support can be granted to Group I commercial fishermen in mainland Finland and to full-time commercial fishermen in Åland. In addition, aid may be granted to companies engaged in fish farming, fish processing and fish wholesale and retail throughout the country. Aid can only be granted to companies that have had the conditions for profitable business before the start of the interest rate crisis.

The amount of support may not exceed 70% of the necessary financial adjustment needs assessed by the ELY Center. The grant can range from 2,000 to 120,000 euros. The amount of aid will be considered taking into account the other grants received by the company to manage the effects of the coronavirus epidemic.

The application procedure opened 14.10.2020. More info here (only in Finnish).


The government has agreed on a model to support restaurants in employment and to reimburse costs that companies have not been able to adapt to the change caused by the statutory restriction.

The model prepared by the Ministry of Employment and the Economy consists of two complementary parts: support for re-employment and compensation for restrictions on activities. The support requires a separate application, but compensation can be reimbursed without an application on the basis of the information provided to the tax office. Re-employment support is also available for the employment of leased workers. The model has been designed to take into account the seasonal variation of the business.

Grants are paid by the KEHA Center. More details here.


The Ministry of Agriculture and Forestry and agencies in its administrative branch follow the coronavirus situation very closely. More on the subject from their website.

Temporary aid to rural enterprices for financial difficulties caused by the coronavirus epidemic from Centre for Economic Development, Transport and the Environment.

Securing the operating conditions for fish sector (only in Finnish).