The Technology Fund is a political instrument of the Swiss government's climate strategy, and is rooted in the CO2 Act. The technology fund provides loan guarantees in an amount of up to CHF 3 million to innovative small and medium entities (SME) whose products contribute to the mitigation of climate change. Interested companies can find out whether they fulfil the most important criteria by completing a preliminary assessment online.
The Technology Fund backs companies that fulfill the following criteria:
- The product belongs to one of the four eligible technologies: Reduction of greenhouse gas emissions, efficient utilization of electrical energy, promotion of renewable energies or conservation of natural resources
- The product offers a sizable market opportunity and the technology is innovative.
- The company is generating revenue or is preparing for a market launch with a marketable prototype.
- The company is creditworthy and can show that under normal conditions it can pay back the guaranteed loan.
- The company is based in Switzerland.
Products and Services
The climate policy goal is clear, according to the CO2 Act domestic greenhouse gas emissions must be lowered by at least 20% by 2020 compared with 1990. Together with the Technology Fund for Swiss Companies, the Swiss Confederation is developing and marketing climate-friendly technologies with innovative business models. The Fund can grant new loan guarantees up to 2020 and has been supplying CHF 25 million a year since 2013 from the revenue made from the CO2 tax on fuels. The maximum term of a loan guarantee is 10 years and the maximum amount is CHF 3 million.
During their growth phase, young companies will need a bank loan to fund their investments. Banks want collateral however which companies are often not in a position to offer. Loan guarantees make access to borrowed capital easier because they massively reduce the risks for the lender.