Vækstfonden provides new financing solutions in Greenland

Vækstfonden (the Danish Growth Fund) is opening the way for businesses in Greenland and the Faeroe Islands to use the financing solutions offered today by Vækstfonden to small and medium-sized businesses. This is a consequence of an amendment in the Act concerning Vækstfonden.

Vækstfonden provides the below solutions:

  • Vækstkaution (guarantee) in security of loans and credits (for up to DKK 2 million)
  • Vækstlån (loan) granted as part of an expansion plan or in connection with transferring company ownership (this loan is ranked after other loans and debt)
  • Subordinate loans (must be part of a complete financing solution )
  • Venture capital (requires highly innovative products or business plans, etc.)

At the same time, a loss limit has been reserved in relation to Vækstkaution giving rise to loans from local financing institutes of up to DKK 65 million to businesses in Greenland and Faeroe Islands. When choosing Vækstkaution, Vækstfonden will guarantee up to 75 % of a loan to a business unable to provide enough collateral to obtain a loan at a bank or another financing institute.

Vækstfonden will to a high degree operate via agreements with local cooperation partners such as banks, financing institutes and private investors.

contacts

Søren Hornbæk Svendsen

Partner

Helen Kibsgaard

Senior Attorney