Minimum 40% other funds
The loan guarantees are designed as joint guarantees. Every project supported must contribute at least 40% of the amount using other funds. This may include new equity and loans (e.g., shareholder loans) or existing cash. Past investments in property, plant and equipment or research & development do not count. The 40% other funds can be taken into account from the date of the application until issuance of the guarantee.
Eligible sources of funding
Loan providers can include Swiss banks or other appropriate Swiss lenders, for example mezzanine financing, venture debt providers or business angels.
Loan repayments and interest payments have to be made within the predefined duration of the loan guarantee. Generally, a minimum of 20 percent of the loan needs to be repaid after the first half of the duration.
One-time and recurring fees
Fees apply for the application assessment: CHF 1,000 will be due after successful pre-selection and CHF 2,000 if the committee decides to grant the guarantee. In this case, the company will pay an annual fee equal to 0.9% of the guaranteed amount.
Controlled risks
In minimising risk, the Technology Fund strives to serve a diverse array of clients representing various sectors, company sizes and geographical regions. In addition, the sum of the guarantees cannot exceed CHF 350 million. This ceiling can be raised by parliament to CHF 500 million at a later date.