The Danish Government’s Growth and Jobs Plan, ‘Vækstplan DK’, was released this week. It will give more money for Danish startups, reports Trendsonline.
From 2014, startups will have greater opportunity to borrow money for development through two initiatives in the Growth Fund.
1) An extension for Small Growth Guarantee funds (små Vækstauktioner) in 2014-2015
The initiative involves an increase of 50M DKK (€6.7M) to cover the demand for Growth Fund Small Growth Guarantees in 2014 and 2015. The scheme ensures companies can get guarantees for 75 per cent of loans up to 2M DKK. The boost creates the basis for increased lending of approx. 330M DKK (€44M), which will facilitate access to finance for SMEs.
2) A new Growth Loan (Vækstlånsordning) for entrepreneurs
This scheme promises to create the basis for total lending up to 350M DKK (€47M) annually from 2014-2016, for businesses to finance investment projects. The scheme aims to improve access to finance for the group of entrepreneurs who have a relatively large capital (over 2M DKK), but unable to provide adequate security, who fall outside the Growth Fund’s existing systems. The loans are based on co-investment, when there at least 25 per cent private co-financing per loan (vækstlån).
The government in agreement with the Liberal Party, Liberal Alliance and the Conservative Party on Growth Plan DK, presented the growth package which aims to create jobs and boost business, and make it more attractive for business to invest in Denmark. The plan includes lowering the corporate tax rate from 25 to 22 per cent.
According to Trendsonline the startup communities reception of the Vækstplan news was cautiously positive.