EMFF 2014–2020 loans for fisheries and aquaculture enterprises

The financial instrument of the European Maritime and Fisheries Fund 2014–2020 offers loans through the Rural Development Foundation to entrepreneurs starting or engaged in fish processing and aquaculture production. The purpose of the financial instrument is to improve access to capital for fisheries sector entrepreneurs and to support the establishment of new processing and production units, expansion of existing units, improvement of production efficiency, and the adoption of new or significantly improved products and processes. This is a repayable loan, not a non-refundable grant.

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Agency	PRIA
Region	EU
Country	EE
Legal form	Company, Private person
Max funding	Growth loan for a micro or small enterprise engaged in fish processing: 10,000–100,000 euros., Long-term investment loan for an enterprise engaged in fish processing: 100,000–500,000 euros., In the case of a producers’ organization union, the long-term investment loan amount is counted per member in the range of 100,000–500,000 euros., Investment loan for an aquaculture producer: 10,000–400,000 euros. The acceptance of applications for this loan product has been suspended due to depletion of financial resources.
Coverage	The long-term investment loan for fish processing is granted together with a credit or financial institution or another co-lender accepted by RDF. The financial obligation of the co-lender must comprise at least 30% of the total debt obligations related to the investment object. The growth loan for fish processing and the investment loan for aquaculture producers may be provided by RDF as a direct loan or together with a credit or financial institution. The loan from the financial instrument must not be used for pre-financing grants, and the grant must not be used to repay the loan. The sum of the loan and any other support provided for the same cost must not exceed the actual total cost of the expense.

Grant application conditions

Status of the financial instrument	This is a financial instrument of the European Maritime and Fisheries Fund 2014–2020. There is no specific opening or closing date for the application round specified on the PRIA page. Applications are submitted to the Rural Development Foundation and loans are issued subject to availability of funds in the financial instrument. The acceptance of applications for the investment loan for aquaculture producers has been suspended due to depletion of funds. The growth loan and long-term investment loan for fish processing continue to be published on the RDF financial instruments page.
Applicant for the fish processing growth loan	The applicant must be a micro or small enterprise starting or already engaged in fish processing. The applicant must be registered in the Estonian Commercial Register. The loan may be used to finance new additional fixed asset investments related to fish processing and activities necessary for rapid company growth.
Conditions for the fish processing growth loan	The loan amount is 10,000–100,000 euros. The loan period is up to five years. A grace period of up to two years may be granted, but the loan period together with the grace period may not exceed five years. The loan may be granted as a direct loan or together with a credit or financial institution. The expected result from the realization of the collateral must cover at least 50% of the loan amount. Collateral for the loan may be real estate, commercial pledge, register pledge, or surety.
Applicant for the long-term investment loan for fish processing	The applicant must be a micro, small, or medium-sized enterprise starting or already engaged in fish processing. The applicant may be a union of producers’ organizations as defined in the Fisheries Market Organization Act. The applicant must be registered in the Estonian Commercial Register. The credit or financial institution or another co-lender accepted by RDF must have made a positive financing decision for the applicant.
Conditions for the long-term investment loan for fish processing	The loan amount is 100,000–500,000 euros per applicant. In the case of a producers’ organization union, the loan amount is calculated per member in the range of 100,000–500,000 euros. The loan period is up to 15 years. A grace period of up to five years may be granted, but the overall loan period may not exceed 15 years. The co-lender must finance at least 30% of the total debt obligations related to the investment object. The expected result from the realization of the collateral must cover at least 80% of the RDF loan amount. Collateral for the loan may be real estate, commercial pledge, register pledge, or surety.
Applicant for the aquaculture producer investment loan	The applicant must be an enterprise starting or already engaged in aquaculture production. The applicant must be registered in the Estonian Commercial Register. The loan could be applied for to make a new additional investment related to aquaculture production. The acceptance of applications for this loan product has been suspended due to depletion of funds.
Conditions for the aquaculture producer investment loan	The loan amount is 10,000–400,000 euros. The loan period is up to 15 years. A grace period of up to five years may be granted, but the overall loan period may not exceed 15 years. The loan could be granted as a direct loan or together with a credit or financial institution. At least 50% of the loan amount must be covered by collateral. Collateral for the loan may be real estate, commercial pledge, register pledge, or surety.
Financial capacity	The applicant must be economically sustainable and able to service the loan during the agreed period. The applicant must not have overdue national tax debts. In the case of rescheduled tax debts, overdue installments must have been paid, and the reason and amount of the debt must not indicate economic difficulties. The applicant must not have overdue obligations to RDF, a credit or financial institution, or any other person, which indicate economic difficulties. The members of the management body and owners of the applicant must be reliable and competent.
Recommended financial indicators	The equity of the applicant for the long-term investment loan for fish processing should be at least 20,000 euros. The loan coverage ratio of the applicant for the long-term investment loan should, according to a conservative estimate, be at least 1.1. The liquidity ratio of the applicant for the long-term investment loan should be at least 0.5. The loan coverage ratio of the applicant for the growth loan should, according to a conservative estimate, be at least 1.1.
Activity license	An enterprise engaged in fish processing must have a valid activity license from the Agricultural and Food Board within a reasonable time after project implementation. If the necessary activity license is not issued, RDF may review or amend the terms of the loan agreement.
Interest rate	The loan may be granted on market terms or as a loan including state aid or de minimis aid. The interest rate for a loan granted on market terms is determined on the basis of the borrower's credit rating, collateral, and the European Commission’s reference and discount rate methodology. In co-lending, the interest rate of RDF’s loan may be at least equal to the interest rate of the credit or financial institution financing the same investment, if the collaterals of the loans are equivalent. An interest rate lower than market terms constitutes aid, and RDF calculates the gross grant equivalent thereof.
State aid requirements	The applicant must comply with applicable European Union state aid or de minimis aid requirements. Activities and expenses financed with the loan must meet the eligibility conditions under the applicable state aid base. If state aid rules require, the loan must have an incentive effect and the application must be submitted before starting the investment.
Loan disbursement and repayment	The loan is disbursed either in a lump sum or in installments within one year of concluding the loan agreement. The loan may be repaid in equal principal payments, as an annuity, as a single final payment, or according to a justified special schedule. In co-lending, RDF's loan repayment schedule may be subordinated to the schedule of the credit or financial institution. There is no fee for concluding the loan agreement and its first amendment. The fee for repeated amendments of the loan agreement may be up to 1% of the outstanding loan balance. No penalty shall be applied for early repayment of the loan.
Documentation	https://www.pria.ee/toetused/laenud-kalanduse-ja-vesiviljelusega-tegelevale-ettevotjale

Eligible expenses

Evaluation criteria

Business exclusions

Reporting

Application process

Application requirements