Investment loans of the EMFAF 2021–2027 financial instrument

The funding instrument of the European Maritime, Fisheries and Aquaculture Fund 2021–2027, via the Foundation for the Development of Rural Life (MES), offers investment loans to producers of aquaculture products, as well as processors of fishery and aquaculture products. Economically sustainable investments are financed, which strengthen the competitiveness of companies, improve the quality of products, increase added value, or promote environmentally sustainable aquaculture, but for which the company cannot obtain sufficient funding from the market. This is a repayable loan granted together with a credit or financial institution, not a non-repayable grant.

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Agency	PRIA
Region	EU
Country	EE
Legal form	Company
Start date	1 Dec 2025
Max funding	Investment loan for aquaculture product producers: up to 1,000,000 euros per entrepreneur., Investment loan for processors of fishery and aquaculture products: up to 1,000,000 euros per entrepreneur., In the case of a union of producer organizations, the amount of the processor's investment loan may be up to 1,000,000 euros per member of the union., Repeated loan applications are possible, but the outstanding balance of the existing loan and new loan amount together may not exceed the maximum limit of the financial product.
Budget	The total amount of loans from the financial instrument is 12,000,000 euros, with an additional 840,000 euros as a management fee. For investment loans to aquaculture producers, 4,000,000 euros are planned and for the management fee 280,000 euros. For investment loans to processors of fishery and aquaculture products, 8,000,000 euros are planned and for the management fee 560,000 euros. The capital of the financial instrument is composed of a 70% EMFAF share and a 30% Estonian state budget share.
Coverage	The loan is only provided together with a loan from a credit or financial institution. The credit or financial institution must finance at least 30% of the total sum of the financial instrument’s loan and the credit institution's loan liabilities. Working capital related to the investment may represent up to 30% of the total sum of the financial instrument’s loan. The loan may be combined with support from PRIA, RTK, KIK, or other sources, but the total sum of the loan and grant may not exceed the actual cost of the same cost item. The loan may not be used for pre-financing grants, and grants may not be used for repayment of the financial instrument’s loan.

Grant application conditions

Financial instrument loan products	Investment loan for aquaculture product producers is intended for sustainable aquaculture production’s fixed asset investments. Investment loan for processors of fishery and aquaculture products is intended for investments in product processing, marketing, quality improvement, and increasing added value. Entrepreneurs submit a loan application to the Foundation for the Development of Rural Life.
Applicant registration	The applicant must be registered in the Estonian Business Register.
Company size	The applicant must meet the definition of a micro, small, or medium-sized enterprise according to the European Union.
Target group: aquaculture product producers	The entrepreneur’s business area must be related to the production of aquaculture products. The investment must promote sustainable aquaculture activity and strengthen the competitiveness of aquaculture production. The activity must be environmentally sustainable in the long term, and the necessary environmental permit must be issued or planned to be issued.
Target group: processors of fishery and aquaculture products	The entrepreneur’s field of activity must be related to the production, processing, or marketing of fishery or aquaculture products listed in Annex I of Regulation (EU) No. 1379/2013. The applicant can be an eligible SME engaged in the processing of fishery or aquaculture products. The applicant can be a producer organization or union of producer organizations as defined in the Fisheries Market Organization Act.
Location of investment	The object of investment financed by the loan must be located within the territory of Estonia.
Market failure existence	The financed project must be economically sustainable. The financial instrument is intended for investments that cannot secure sufficient funding from the market, for example due to insufficient collateral, long investment periods, or the specific characteristics of the fisheries sector.
Joint lending	The MES loan is granted only together with a loan from a credit or financial institution. The share of the bank or other financial institution must constitute at least 30% of the total amount of debt liabilities. Before MES’s final loan decision, the credit or financial institution must make a loan decision specifying the loan sum, term, and possible interest rate.
Loan period for loans up to 200,000 euros	The loan period may be up to seven years. A grace period of up to two years is possible. The need for a grace period must be justified in the application.
Loan period for loans over 200,000 euros	The loan period may be up to 15 years. A grace period of up to five years is possible, but not more than three years consecutively. The need for a grace period must be justified in the application.
Loan disbursement	The loan can be disbursed at once or in several instalments. The loan must be drawn down within one year after signing the loan agreement. For loan repayment, a schedule with equal principal payments, an annuity schedule, a single final payment, or a justified special schedule may be used. MES loan repayments may be subordinated to the repayment schedule of the credit or financial institution's loan.
Collateral	The loan collateral must at least meet the small collateral level according to the European Commission's reference and discount rate methodology. The main collateral can be a mortgage, commercial pledge, register pledge, or company guarantee. As additional collateral, a surety by a management board member, owner, or union member up to 50,000 euros is possible. MES will assess the value, realizability, and sufficiency of the collateral when making a loan decision.
Interest rate	The loan interest rate is determined based on the European Commission’s reference and discount rates, taking into account the entrepreneur’s credit rating and provided collateral. The interest may be reduced to a level not lower than the interest rate specified in the credit or financial institution’s loan decision financing the same investment. The reduction of the interest rate may entail state aid or de minimis aid.
Economic sustainability	The entrepreneur must be sustainable and solvent. The entrepreneur must not be an enterprise in difficulty within the meaning of the European Union state aid rules. The entrepreneur’s equity capital must meet the requirements of the Commercial Code. The company must have sufficient capacity to service loans from both MES and the financial institution during the entire loan period.
Tax debt and payment behaviour	The company must not have any national tax arrears, or the tax arrears must be properly scheduled. The company must not have overdue unpaid obligations that indicate financial difficulties. The company, its owners, or related enterprises must not have been in arrears to MES for at least 60 consecutive days during the last 12 months, except for temporary and clearly justified debts.
Trustworthiness of managers and owners	The members of the company's management body and owners must be trustworthy and competent. Neither they nor their related entities may have caused culpable financial damage to MES or the fund managed by MES. MES may verify the applicant’s and related persons' payment behaviour and obligations through authorities, financial institutions, and credit information service providers.
Compliance with fisheries requirements	The applicant must confirm that they have not committed any of the serious infringements or fraud referred to in Article 11 (1) and (3) of Regulation (EU) 2021/1139. The applicant and any person exercising control over them must not have valid penalties specified in the support conditions for serious fisheries, misuse of support, or environmental offenses.
State aid conditions	In case of state aid, the company must comply with the relevant EU state aid or de minimis aid conditions. Where necessary, the conditions of Regulation (EU) No. 717/2014 shall additionally apply to aquaculture producers. Where necessary, the conditions of Regulations (EU) No. 2023/2831 and No. 651/2014 shall additionally apply to processors of fishery and aquaculture products. When combining the loan with other public support, the permitted aid ceiling may not be exceeded.
Environmental permit and climate resilience	For aquaculture activity, the existing environmental permit must be submitted or its application described if a permit is required. In the case of infrastructure investments with an expected duration of at least five years, a climate resilience assessment must be added to the business plan. The investment must be environmentally sustainable in the long term.
Loan agreement fees	There is no fee for concluding the loan agreement. There is no fee for amending the loan agreement. No penalty is applied for early repayment of the loan.
Processing of applications	Loan applications are accepted on a rolling basis until the resources of the financial instrument are exhausted or the conditions are changed. The processing period for a proper loan application and, if necessary, also a support application is up to 35 working days. The processing term is suspended during the request for additional information or the correction of deficiencies. MES may reject the application if the project is too high risk, the collateral or creditworthiness is insufficient, false data has been provided, or the financial instrument lacks the necessary funds.
Documentation	https://www.pria.ee/toetused/rahastamisvahendid-emkvf-2021-2027

Eligible expenses

Evaluation criteria

Business exclusions

Refinancing of existing loans or other debt obligations.

Pre-financing of support from PRIA, RTK, KIK, or other sources.

Repayment of the financial instrument’s loan using a non-repayable grant.

Investments completed or fully implemented before the loan application is approved.

Combining the loan and grant in such a way that their total amount exceeds the cost of the same cost item or the allowed state aid rate.

Actions that increase the fishing capacity or total tonnage of a fishing vessel.

Acquisition of equipment that increases the ability to locate fish.

Construction, purchase, or import of a fishing vessel, including acquisition of the first fishing vessel or partial ownership thereof.

Transfer or re-registration of a fishing vessel to a third country.

Temporary cessation or permanent termination of fishing activities.

Exploratory fishing.

Transfer of business ownership.

Direct restocking of stocks.

Construction of a new port or auction house, except for the creation of a new compliant landing site.

Market intervention mechanisms that remove products from the market to artificially influence prices.

Investments in fishing vessels solely to meet mandatory EU requirements in effect at the time of application.

Investment in a fishing vessel that has been fishing for less than 60 days during the two calendar years preceding the application year.

Replacement or modernization of the main or auxiliary engine of a fishing vessel.

Illegal economic activity.

Production or trade of tobacco, distilled alcoholic beverages, or related products.

Production or trade of weapons or ammunition.

Casinos and equivalent gambling businesses.

Development of IT solutions that directly support online gambling, internet casinos, or pornography.

Development of IT solutions enabling illegal entry into electronic communications networks or downloading of data.

Research and development or technical applications related to human cloning.

Research and development or technical applications involving genetically modified organisms.

Financing of an enterprise in difficulty, insolvent or not meeting the equity requirements of the Commercial Code.

Financing of a company with unscheduled tax arrears or overdue debt obligations that indicate financial difficulties.

Financing of an applicant who has committed a serious fishing, environmental, or support misuse infringement specified in the conditions.

Reporting

Application process

Application requirements

Properly completed and signed EMFAF 2021–2027 financial instrument loan application.

Applicant's business name, registration code, business location, contact details, bank account details, and EMTAK codes of fields of activity.

Amount of the loan applied for, purpose, desired repayment term, and justification for the need for a grace period.

Description, location, total cost, VAT, own contribution, and detailed list of costs for the investment object.

Planned start and end date of the investment and information on activities already started.

Information on existing and planned liabilities and grants applied for or received for the investment.

List of shareholders or partners, if different from the information published in the business register.

Group member and controlling person chart, if the applicant is a part of a group or has links with other companies.

Annual report for the previous financial year, if not available from the business register.

In the case of a sole proprietor, form E of the previous year's income tax return, balance sheet, income statement, and list of long- and short-term liabilities.

Current year's balance sheet and income statement, no older than three months.

Business plan, including a description of the company's previous activity, future plan, investment, financial forecasts, and description of monitoring and result indicators.

In the case of infrastructure investments with an expected duration of at least five years, a climate resilience assessment.

Expert evaluation of the value of the property offered as collateral, if available or required by MES.

Loan decision by the credit or financial institution specifying the loan amount, term, and possible interest rate.

Environmental permit, if the planned activity requires an environmental permit.

Confirmation that the applicant has not committed any serious infringement or fraud specified in Article 11 of Regulation (EU) 2021/1139.

Consent to check payment behaviour and obligations and to carry out audit and inspection operations of the investment.