EC, European Investment Fund make available 8BN euro finance for 100 000 SMEs

Written by on April 6, 2020 in Europe - Comments Off on EC, European Investment Fund make available 8BN euro finance for 100 000 SMEs

The European Commission said on April 6 that it had “unlocked” a billion euro from the European Fund for Strategic Investments that will serve as a guarantee to the European Investment Fund (EIF).

This will allow the EIF to issue special guarantees to incentivise banks and other lenders to provide liquidity to at least 100 000 European SMEs and small mid-cap companies hit by the economic impact of the coronavirus pandemic, for an estimated available financing of eight billion euro.

The April 6 announcement fulfils the commitment in the Commission Communication of March 13 to bring immediate relief to hard-hit SMEs, with money able to flow already in April, the Commission said.

“Following today’s call for expression of interest, financial intermediaries with existing EIF agreements under the COSME and InnovFin programmes will be able to access the new guarantees immediately upon their request,” it said.

Other financial intermediaries can access the guarantees following a swift application process.

SMEs will be able to apply directly to their local banks and lenders participating in the scheme, which will be listed on www.access2finance.eu.

(Photo: Filippo Vicarelli)

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