The InnovFin SME Guarantee Facility - managed by the European Investment Fund (EIF) - is part of “InnovFin – EU Finance for Innovators”, an initiative launched by the European Commission and the European Investment Bank (EIB) Group in the framework of Horizon 2020.
The InnovFin SME Guarantee Facility will be deployed by eligible local banks, leasing companies, guarantee institutions, etc. which are selected after a due diligence process following the launch of a Call for Expression of Interest. These local partners act as financial intermediaries and are selected by EIF.
EIF, acts for both EIF and the European Union (EU) as the implementing body, and covers a portion of the losses incurred by the financial intermediaries on loans, leases and guarantees between EUR 25 000 and EUR 7.5 million which they provide under the InnovFin SME Guarantee Facility. In this way, the EU and EIF allow the provision of more debt financing to innovative Small and Medium-Sized Enterprises (SMEs) and Small Mid-caps (up to 499 employees).
The InnovFin SME Guarantee Facility is a demand-driven, uncapped instrument that builds on the success of the Risk Sharing Instrument (RSI), developed under FP7, the 7th EU Framework Programme for Research and Technological Development (2007-2013) .
Eligible applicants -defined according to applicable legislation, established and operating in one or more of the EU Member States and Horizon 2020 Associated Countries- are:
- financial, credit institutions or loan (debt) funds duly authorised to carry out lending or leasing activities to SMEs;
- guarantee schemes, guarantee institutions or other credit or financial institutions duly authorised to issue guarantees to SMEs.
Research-based and innovative SMEs and Small Mid-caps established and operating in one or several EU Member States and Horizon 2020 Associated Countries can benefit from the InnovFin SME Guarantee Facility.
For more details on eligibility criteria and application process please click here.