Improved access to loans for Danish entrepreneurs
23 December 2013
In a press release, the Danish Ministry of Business Affairs and Growth has announced that the partners behind the Danish Growth Plan have agreed to launch a new loan system for entrepreneurs ahead of schedule.
Growth loans to entrepreneurs, which are designed to improve access to finance for entrepreneurs who have a financing gap of 268 thousand EUR, were originally planned for 2015, but will now be available much sooner. The partners behind the Danish Growth Plan, the Government, the Liberal Party of Denmark, the Liberal Alliance and the Danish Conservative Party, have agreed to launch the scheme this year.
"We have brought the scheme forward so entrepreneurs now have improved access to financing. Those entrepreneurs who are already well established and have the opportunity to accelerate their business activities further, are very important for growth and jobs in Denmark. So I am very pleased that the loans are now being launched ahead of schedule", says Henrik Sass Larsen, Minister of Business and Growth.
According to Christian Motzfeldt, Director of Business Development Finance (Vækstfonden), the scheme will also provide more help for more entrepreneurs.
"We estimate that about 50 entrepreneurs per year will benefit from the new scheme. But it may well be more, depending on how diligent banks and businesses are in taking advantage of the new opportunities", says Christian Motzfeldt.
Specifically, Business Development Finance will provide entrepreneurs with up to 46.9 million EUR per year, up to and including 2017. Growth loans are targeted at entrepreneurs and young companies with a relatively large amount of capital and customer base, but where access to finance is hampering progress. A 25% private co-investment is required.
Read the original press release from the Danish Ministry of Business Affairs and Growth (IN DANISH)