EU loans for companies - how to take out a business loan with an EU guarantee

What is an EU business loan?

EU loans, or EIF loans, are tailored to empower small and medium-sized companies within the European Union. They are unique because they are not provided directly by the EU, but through cooperation agreements with financial institutions such as the European Investment Bank and EIF (European Investment Fund). These loans are intended to promote economic growth and innovation by offering capital under more favourable terms than traditional market loans.

Favourable terms with EU loans

The difference between EU loans and traditional business loans lies in the favourable terms. EU loans are often characterized by lower interest rates; for example, the effective annual interest rate for EU loans was between 8-16% in 2023, compared to 18-22% for ordinary corporate loans. In addition, they often have more flexible repayment terms, which is a great advantage for small companies in the growth phase or when restructuring.

EU guarantees and risk minimization

Another key aspect is the EU guarantees that reduce the risks for the lender. This makes EU loans more accessible to companies that may not be able to offer traditional securities or that do not have a strong credit rating. Through these guarantees, EU loans stimulate growth and development among small and medium-sized companies across the union.

What are the basic eligibility requirements for an EU loan?

Understanding the basic requirements for EU loans is essential for any small business owner considering this form of financing! Here, we break down these requirements to make it easier to see if your company qualifies for an EU loan.

Basic Eligibility Requirements

To qualify for an EU loan, your company must meet certain specific criteria related to company size, financial health and business structure. These criteria include:

• Company size: The loan is mainly aimed at small entrepreneurs.
• Type of company: These loans are only offered to private companies.
• Number of employees: Your company must have a maximum of 9 employees.
• Turnover: The company must not have a turnover that exceeds 200,000 euros.
• Total assets: Assets must not exceed 200,000 euros.
• Financial statements: The company must have at least one established and registered financial statements.

These requirements are designed to ensure that EU loans reach the companies that best suit the EU's intention with the program, which is to support small entrepreneurs and promote economic growth within the EU. Does your company meet these requirements? Then your company may be able to access finance that would otherwise be difficult to access, and thus have a chance to grow and develop!

The EU loan application process

Applying for an EU loan involves some important steps - it can feel like a big challenge, but don't worry. By following these steps carefully, you can increase your chances of successfully obtaining an EU loan for your company.

Steps to apply for an EU loan

1. Identify an appropriate funding partner: First of all, it is important to find a suitable financing partner that offers EU loans. This may include banks or other financial institutions that work with the EIF.

2. Prepare the necessary documentation: Gather all necessary documents, including the company's financial reports, a business plan, and other relevant documents that prove that your company meets the basic requirements.

3. Submit digitally: Many financing partners offer the option to apply for an EU loan digitally, making the process smoother and faster!

4. Review and Approval: After you submit your application, the funding partner will review your case. This may include a credit check and an assessment of your company's financial health.

Choose the right financing partner

Choosing the right financing partner is crucial. It's important to work with an institution that not only offers favorable terms, but also understands your specific business needs and goals. A good funding partner can provide valuable advice and support throughout the application process.

By following these steps and choosing the right partner, you can simplify the process of obtaining an EU loan for your business and help your business plans move towards economic growth and success.

Is an EU loan not for you? Then choose Qeld

If your company does not meet the requirements for an EU loan, you can apply for a business loan from Qeld instead! The only cost for your Qeld loan is a fixed monthly fee, which is determined based on the size of the loan and the company's creditworthiness. Qeld offers business loans of between 1,000 and 500,000 euros that can help you invest in new equipment, expand your marketing or expand your business. We have no hidden costs or binding terms on your loan - with a simple one-minute application process, you can get quick and easy access to capital. If everything looks good, you can even have the money in your account the same day!

Your path to growth with EU business loans

As a small business owner, you are at an exciting crossroads. EU loans can be just the boost you need to scale up your business. With favorable terms, support from the EIF and an easy application process, it's definitely an opportunity worth exploring. And if an EU loan doesn't feel right for you, you can always apply for a low-cost loan from Qeld today. Time to unlock your company's full potential - good luck doing business!

FAQs about EU business loans

What is an EU loan?

EU loans are financial instruments designed to support small and medium-sized businesses within the EU by offering favourable financing conditions. They are often managed through partnerships with financial institutions and are intended to promote economic growth and innovation.

‍

What is required to get EU subsidies?

To receive EU subsidies, companies often have to meet specific criteria related to company size, financial health, and type of project or sector. However, requirements vary depending on the specific grant program.

‍

Who offers EU loans?

EU loans are offered by various financial institutions that work with the European Union, such as banks and lenders. These institutions work in cooperation with the European Investment Fund to provide these loans.

‍

Can a start-up company get a loan?

Yes, a start-up company can get a loan, including EU loans. Some lenders and EU-funded programs are specifically focused on supporting start-ups and may offer customized financing options.

‍