One year after approval in May 2020 by the European Investment Bank (EIB) of Pan-European Guarantee Fund, endowed with almost 25,000 million euros to respond to the COVID-19 crisis, the EIB has already used 50% of said fund approximately.
Among the different measures and emergency funds adopted by the EIB to assist companies, the Fund estimates that it has mobilized around 100,000 million euros, and plans to allocate a maximum of others 200 billion in business loans, especially for SMEs throughout the European Union.
“These figures show that Europe’s response is making a real difference in record time, adding to the EIB Group’s track record in financing research and development of treatments and vaccines, which today allows us to see the light at the end of the Covid tunnel “, has indicated EIB President Werner Hoyer.
The institution has already signed agreements in almost all 22 EU countries that participate in the Fund. By the end of 2021, the EIB expects to have employed all of the 24,400 million and have mobilized in additional investments up to eight times that amount, equivalent to more than 195,000 million euros.
“SMEs need financing and they need it now. We are working tirelessly to provide markets with record amounts of resources,” added EIB Vice President Dario Scannapieco.
InnovFin Program
Within this provision of financial resources, the EIB Group – made up of the European Investment Bank and the European Investment Fund – has jointly promoted the InnovFin Finance program of the European Union for innovators, who enables qualified financial intermediaries such as Gedesco.
The aim of the program is to facilitate and accelerate access to finance for innovation companies and entities in Europe to prevent or overcome difficulties related to the lack of funding, which limit the implementation of R&I activities since these types of companies deal with complex products and technologies, unproven markets and intangible assets.
Regarding its operation, the InnovFin Guarantee Fund for SMEs is deployed by eligible local banks, investment companies, leasing, guarantee institutions and other qualified financial intermediaries such as Gedesco that have been selected after a process of due diligence after the launch of a call for expression of interest.
The InnovFin SME Guarantee Fund, together with financial support from the EU under the Horizon 2020 program and the European Fund for Strategic Investments (EFSI) established under the Investment Plan for Europe, help finance and implement productive investments in the European Union to guarantee an increase in access to finance.
In this sense, Gedesco makes a new line of financing available to Spanish companies under the InnovFin program. At Gedesco, they facilitate the financing of the long-term program through loans for self-employed, small and medium-sized companies that are oriented to R & D & I projects of an innovative nature to enhance their growth and development.
They are eligible for this financing SMEs with less than 250 workers and with a turnover less than or equal to 50 million euros or with a balance less than or equal to 43 million euros. Also the medium-sized companies with less than 500 workers and that are not SMEs they can opt for this new line.
– .
