Business renewable-energy loan
A loan for companies buying and installing solar panels, wind turbines or heat pumps for their own use, with a conditional option to borrow without pledging extra assets as security.
You can finance both the purchase and installation of equipment that supplies energy for your company’s own consumption. You repay the loan with interest.
The repayment term is up to five or ten years, depending on the loan amount and assets pledged as loan security (collateral). Interest is set individually. Loans of €5,000–€100,000 may be available without pledging extra assets as security if both your company and project meet InvestEU or ALTUM guarantee conditions. These guarantees help companies that do not have enough assets to secure a loan.
The management fee starts at 1% of the loan amount, with a €150 minimum for loans up to €200,000. Above €200,000, the fee is set individually, with a €300 minimum.
Eligibility
- Your company must have carried out business activities for at least 12 months.
- The solar panels, wind turbines or heat pumps must be for the company’s own consumption.
- Under Swedbank’s general business-lending criteria, your company’s equity cannot be negative: its assets must at least cover its liabilities. It must have sufficient turnover (sales revenue), or a future project with good potential to generate sales.
- You must have completed and updated the bank’s anti-money laundering (AML) questionnaire, which collects information about your company for the bank’s checks.
The option to borrow without pledging extra assets depends on meeting the relevant guarantee conditions.
- The InvestEU SME Guarantee covers companies with up to 250 employees and annual sales of up to €50 million or a balance-sheet total (total assets) of up to €43 million. Its financing limit is €2 million.
- The InvestEU Micro Guarantee covers companies with up to nine employees and annual sales or total assets of up to €2 million. Its financing limit is €50,000.
- Both InvestEU guarantees are free of charge. The ALTUM portfolio guarantee covers financing up to €500,000 and charges an annual guarantee fee. The listed fee is 1.42% for financing longer than two years; Swedbank lists 0.4% and 0.8% for terms under two years. Above €500,000, Swedbank offers an individual ALTUM credit guarantee.
These are guarantee-programme limits; the option to borrow without pledging extra assets under this renewable-energy offer remains €5,000–€100,000.
If you use an ALTUM portfolio guarantee, it is provided as de minimis State aid, a form of public support governed by EU aid rules, and you must follow the EU Funds’ publicity requirements: acknowledge the EU support in the required public materials and use the required logos.
How to apply
- Status
- Open continuously
Consult the equipment supplier about purchase and installation costs, then apply through Swedbank Latvia’s internet bank. Swedbank says it will contact you within two business days.
The bank may ask for an annual financial report no older than 12 months if it has not been submitted to the Commercial Register. If property is needed as loan security, it asks for a valuation from a real-estate agency it accepts.
Sign the agreement through internet banking or arrange a visit to a Swedbank branch. Register any assets pledged as loan security (collateral) and arrange insurance if required.
Within 90 days after signing the agreement, submit a document proving that the loan money was transferred for purchasing and/or installing the solar panels, wind turbines or heat pumps.