Innovation credit

You need money to achieve business plans. But arranging the finance  can often be a difficult task: banks and venture capital funds may  consider a loan or credit too risky. The Netherlands Enterprise Agency  (RVO) can help you out with various financing possibilities.

You have an innovative idea and see market opportunities for a new  product. You have knowledge, vision and ambition, but insufficient  financial backing. After all, who wants to invest in a project which,  although promising, also involves high risks? The Dutch government helps  businesses by providing guarantees for banks and covering risks. That  makes it more likely that lenders will grant you an innovation credit or  loan.

Who is it for?

The funding for the Innovation Credit comes from the SME+ Innovation  Fund of the Dutch Ministry of Economic Affairs. It is a ‘revolving’ fund  designed to finance risky innovation. Revolving means that the money  you repay goes back into the fund so that other businesses can then use  it. The scheme is operated by the Netherlands Enterprise Agency  (RVO.nl). Businesses based in The Netherlands, Bonaire, Sint Eustatius  or Saba, whether start-ups or established companies, can take advantage  of the Innovation Credit.

What is it?

The Innovation Credit is a risk-bearing loan. You are required to repay  the capital and the interest charged on it. The interest rate depends on  your risk profile. The credit is intended to finance promising,  innovative projects which are likely to lead to new products within a  few years. Small businesses can use the Innovation Credit to finance 45%  of the development costs of a project, medium-sized businesses 35% and  large businesses 25%. The maximum credit is €5 million. Development  costs include the wage costs of the business, materials, outsourcing  costs and patent application fees. If the project fails technically, the repayment obligation can be waived. If it succeeds, the loan must be  repaid within 10 years together with the accrued interest.

www.rvo.nl