The application period for Business Finland's temporary RDI loan for disruptions has been extended until 15 October 2021. The loan for business disruptions is intended to provide funding for research, development and innovation (RDI) projects. Funding can be applied for by SMEs and midcap companies operating in domestic or international markets, and foundations and associations engaged in significant business activities, that employ at least six full-time wage earners. Through RDI projects, recipients of funding can modernize their products, services or production methods, thus improving their business preconditions and competitiveness.
Funding is intended for limited liability SMEs and midcap companies whose business activities have been significantly affected by disruptions resulting from the coronavirus pandemic. Applicants must be able to indicate to Business Finland how the coronavirus crisis has disrupted their business activities or what kind of a threat the crisis presents, and how these challenges can be resolved by means of an RDI project. Business Finland’s funding is subject to discretion. Funding can also be applied for by foundations and associations that were engaged in significant business activities before the coronavirus situation.
The business activities of funding recipients must be of such a size that they can carry out an RDI project of at least EUR 150,000 and repay the RDI loan from business income.
When assessing the impact of funding, special attention will be paid to the employment effects of the funding on Finnish society. Therefore, applying organizations must have at least six full-time salaried employees in Finland. This includes any employees who have been temporarily laid off, but not owners who work in their company without any pay (see FAQ).
1. The coronavirus situation has disrupted the business activities of an applicant operating in domestic and/or international markets, and the goal of the RDI project is to directly resolve the disruption or business threat experienced by the applicant as a result of the coronavirus situation.
2. The coronavirus situation has disrupted the business activities of an applicant seeking international growth, while the goal of the RDI project is not to directly resolve the disruption or business threat experienced by the applicant as a result of the coronavirus situation.
The funding may not be used for a project for which the company has received development funding for disruptive business circumstances in grant form from Business Finland. However, a company that has received assistance can apply for temporary RDI loan funding to continue the development process started in the assisted project (e.g. for piloting and R&D) after the assisted project has ended. Loan funding may also be granted alongside development funding in disruptive circumstances, but in such cases, the actions must concern different targets than the grant project.
The funding cannot be used for:
The minimum loan for businesses in disruptive circumstances is EUR 100,000. The amount of the loan for a company, a foundation or an association operating in the domestic market may not exceed EUR 500,000, and the maximum amount of funding for projects of companies, foundations and associations seeking international growth will be assessed according to their needs.
Business Finland's loan covers 50-70% of the approved project costs, depending on the project type as described above. The company must cover 30-50 % of the costs through its own finances. The applicant must be able to prove to Business Finland that it has sufficient funds for the whole duration of the project. As Business Finland's funding is generally paid retrospectively, the funding receiver must first be able to pay the costs arising from the project itself.
The term of the loan is generally 7-10 years. In general, it is possible to have three years during which no principal is repaid. In the case of loans to companies seeking international growth, the loan period is the same as in Business Finland's normal RDI funding.
At the beginning of the project, 30% of the loan can be granted for the project in advance. The rest of the funding is paid on the basis of the actual costs.
Loans are unsecured, so no collateral is required. If the project is delayed, fails, or produces results that cannot be used in business operations, you can ask Business Finland to amend the loan terms. Primarily, the recipient is offered more time to repay the loan. In some cases, the unpaid principal and interest on the loan can be converted to a grant in whole or in part. In other words, the loan does not need to be repaid. Read more about Business Finland´s loan funding and loan amendments.
The content and goals of the RDI project determine what project costs can be accepted. Costs will be accepted, at the earliest, starting from the date on which the application was received by Business Finland.
Eligible costs are expenditure on research, development and innovation, which is
The salaries of the company's own personnel can be approved as costs in proportion to the amount of work done on the project, as well as the associated indirect personnel costs, overheads, and the services, machinery, and goods purchased in relation to the project. Acceptable costs are defined in more detail in funding terms for companies’ research and development projects, which should be read before submitting an application.
You can amend/edit your application via the Online Services, so long at its current status is 'Under review'. You will not receive any separate notifications of the amendment of your application's status, but you can monitor it in the Online Service. Do not send your application again by email, even if the status does not immediately change to 'in progress' in the application service.
You can cancel your application by contacting the record office. Applications cannot be canceled in the Online Service. Your message must include the application reference number and your organization's name.