English
About Svanni
Svanni – the Women’s Loan Guarantee Fund – is owned by the Ministry of Justice and the Ministry of Higher Education, Science and Innovation, together with the City of Reykjavík. The fund has been operating since its establishment in 2011 and its mandate was recently renewed for a four‑year period, from 2025 to 2029.
The fund provides loans with loan guarantees to companies that are majority-owned by women, meaning that no collateral is required for the loan.
An agreement is in place with Landsbankinn for the provision of these loans, with the bank sharing half of the risk with the fund.
Since the fund began operating in 2011, a total of 182 applications have been received. Loans have been approved for 34 companies with diverse business activities.
Mission and Objectives
Further information on loan policies and the required documentation can be found on the website under “Applications.”
The fund’s role is to support women in innovation and participation in the labour market by providing loan guarantees for projects within companies.
The fund focuses on the following:
- Supporting women who own and operate small businesses.
- Promoting an increase in the number of women as company owners and managers.
- Improving women’s access to capital for running businesses.
- Increasing employment and fostering innovation in the economy.
- Providing guidance to applicants regarding the fund’s loan guarantees.
- Encouraging participation in the labour market among women from marginalized groups, such as immigrants.
Board of Svanni and Owners
The board of Svanni consists of:
- Guðrún Tinna Ólafsdóttir, Chair, appointed by the Ministry of Justice
- Hákon Skúlason, appointed by the Ministry of Higher Education, Science and Innovation
- Ellen Jacqueline Calmon, appointed by the City of Reykjavík
Cooperation with Landsbankinn
Svanni – the Women’s Loan Guarantee Fund – works in cooperation with Landsbankinn on the provision of loans. The agreement with the bank outlines the purpose of the partnership, which is to provide loans to women in business, with the bank assuming half of the risk alongside the fund.
The agreement specifies the procedures related to loan applications and their processing, the bank’s assessment, types of loans, and the division of responsibilities between the fund and the bank. It also addresses changes in the borrower’s circumstances and loan restructuring.
The fund’s lending rules are approved by both the board and the bank. These rules provide further details on the conditions of guarantees, the handling and evaluation of applications, their approval, the implementation of guarantees, advisory support, the duration of guarantees, and actions related to defaults.
The board and the bank meet regularly to review applications, and there is close cooperation between the fund’s staff and bank employees. The agreement also mandates an annual consultation meeting between the board and Landsbankinn, where the status of loans and other project-related matters are reviewed.
Application Process
Applications are submitted through Svanni’s application system, which is open all year‑round.
Applications close twice a year, in the spring and autumn. At those times, applications are collected and reviewed by the fund’s board.
The board forwards to the bank those applications it believes have potential for a loan. The bank then reviews the business plans and financial documents. Once this assessment is completed, the board and the bank meet to decide which applications will be approved. Applicants who move forward are then invited to an interview with the board and the bank, where additional information about the application and documentation can be requested if needed.
A final decision on loan approval is made following this process.
Required Documents
The following documents must be submitted with the application:
- Business plan
- Financial plan (covering 3–5 years)
- Repayment plan outlining how the loan will be repaid
- Confirmation of company ownership (Note: can be obtained from the company registry)
Loan Rules and Terms
Only companies that are majority‑owned by a woman/women are eligible to receive a loan guarantee or loan. It is required that the project includes job creation.
Loan guarantees may be applied for in relation to the following:
- Marketing expenses
- Product development
- New methods in production or in presenting a product/service
It is possible to apply for a guarantee and loan for projects within a company that are based, at least in part, on innovation, where the company and/or the project leads to job creation and increased value. The business plan of the company and/or the specific project for which the guarantee is requested is assessed and forms the basis of the application.
Loan guarantees are not provided for excessive wage costs or wages of owners related to product development, sales, or marketing. As a rule, guarantees are not provided for regular operating expenses. Loans may be granted for equipment necessary for the business and/or the project, but in such cases the equipment must serve as collateral. Loans may cover the cost price of the equipment, provided that its use contributes to job creation and increased value.
The minimum loan guarantee is 1,500,000 ISK (for a 3 million ISK loan) and generally the guarantee should not exceed 7.5 million ISK (for a 15 million ISK loan).
However, the Board of the Women’s Loan Guarantee Fund may approve higher guarantees in exceptional cases, taking into account the nature and type of applications.