SMEs in South-eastern Europe (from EU MS and Associated Countries) to benefit from €250 million in EU-guaranteed loan
InnovFin SME Guarantee Facility, managed by the European Investment Fund (EIF), is, in addition to InnovFin SME Venture Capital, part of “InnovFin – EU Finance for Innovators”, an initiative launched by the European Commission and the EIB Group in the framework of Horizon 2020. It provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5 million in order to improve access to loan finance for innovative small and medium-sized enterprises and small midcaps (up to 499 employees). The facility is managed by the EIF, and is rolled out through financial intermediaries – banks and other financial institutions – in EU Member States and Associated Countries. Under this facility, financial intermediaries are guaranteed by the EIF against a proportion of their losses incurred on the debt financing covered under the facility.
As mentioned, InnovFin SME Guarantee is part of “InnovFin – EU Finance for Innovators”, the new generation of EU financial instruments and advisory services that was developed under Horizon 2020 to support innovative firms to gain access to much needed finance in a less complicated way. It will make possible to inject up to €48 billion in investments in Research and Innovation throughout Europe.
Small and medium-sized enterprises (SMEs) in seven countries in South-eastern Europe (from EU MS and associated countries) – Albania, Bosnia and Herzegovina, Bulgaria, The Former Yugoslav Republic of Macedonia, Moldova, Romania and Serbia – are granted, through this facility, with easier access to risk capital. This is owing to the InnovFin SME guarantee, a recently introduced EU-supported loan facility under the Horizon 2020 programme. A deal signed on 28 January 2016 by European Investment Fund (EIF) with the German ProCredit group will grant possibility to its banks to enter into new loan agreements with SMEs as well as Small Mid-caps for a total of €250 million over the period of next two years.
The loans to finance innovation activities will be guaranteed up to 50% by the European Investment Fund and the European Union (EU) under InnovFin SME Guarantee, which targets early and development stage companies. It is part of the new generation of financial instruments supported under Horizon 2020, the EU’s Framework Programme for Research and Innovation (IP/14/670).
About InnovFin
InnovFin SME Guarantee is part of “InnovFin – EU Finance for Innovators”, the new generation of EU financial instruments and advisory services that was developed under Horizon 2020 to help innovative firms access finance more easily. It will help inject up to €48 billion in investments in Research and Innovation across Europe.
Over the seven years, almost €80 billion will be invested in research and innovation projects to support Europe’s economic competitiveness and extend the frontiers of human knowledge in course of the innovation funding programme Horizon 2020 that is launched back in January 2014. The EU research budget is focused mainly on improving everyday life in areas like health, the environment, transport, food and energy. Research partnerships with the pharmaceutical, aerospace, car and electronics industries also encourage private-sector investment in support of future growth and high-skilled job creation.
