European Union Structural Funds

European Union Structural Funds

Estonia has an excellent opportunity to use money from the structural funds of the European Union for the development of its human resources, economy and living environment.

Agriculture and rural life in Estonia can be supported through the Estonian Rural Development Plan; the fishery sector receives support from the European Fisheries Fund.

Partial support of projects and paying out the grant after the project has been carried out are the common features of all European Union grants. It means that all grant recipients are expected to contribute to all projects themselves.
  • How can Swedbank help?

    In addition to self-financing, companies must also make sure they have the funds required for the part of the project for which a positive grant decision has been made. This is necessary because the grant will be paid out after the project has been completed. We are offering you different options for bridge financing the grant and for covering the required self-financing to ensure that you can carry your project out successfully.

  • What does ‘bridge financing’ mean?

    • Bridge financing means that the bank will make the amount of the grant available to the company before it is paid out by the person who gives the grant.
    • The person who carries out the project must submit the same cost documents to the bank that it should have present to the grantor in order to use the funds of the bank. It means that the expenses you pay using the amount paid out by the bank must comply with the expenses approved by the grantor.
    • Bridge financing will be given to a project only if the grantor has already made a positive decision about the project. However, a positive grant decision also carries the risk that the borrowed funds are not used for the purpose or the activities planned in the project, it means that the grantor will not pay out the grant. This is the reason why collateral must be provided to the bank in the case of bridge financing. You can apply for a guarantee from KredEx or MES if you cannot provide sufficient collateral.
  • Financing for self-financing

    Self-financing usually forms a large part of a project but the grant recipient cannot often cover this from its own funds. Companies whose projects have positive cash flow can also apply for the financing to cover the required self-financing part of the project.

    Discuss the business plan of the project for which you intend to use the grant with your client executive as early as possible. We can help you find the best financing solutions and prepare the budget of the project.

Useful links:

What products are used to finance projects supported by the European Union:

Type of investment Bridge financing of grants Financing for self-financing
Construction and reconstruction of buildings and structures, infrastructure short-term loan
factoring
revolving credit line
investment loan
Training, information and development projects short-term loan
revolving credit line
overdraft
investment loan
Machinery, equipment, sets for planting short-term loan
revolving credit line
overdraft
investment loan
equipment leasing