SMEs in Iceland benefit from EU loans
The European Investment Fund (EIF) and Iceland’s Arion Bank have signed a loan guarantee deal, offering SMEs in Iceland easier access to risk capital for the development of innovative ideas.
The EU-funded deal will allow the bank to enter into loan agreements with companies of below 500 employees more securely, as any potential losses on loans for innovative activities will be guaranteed by 50% by the EU under the loan guarantee scheme. Overall, the scheme is set to generate a portfolio of €107m in loans to innovative companies over the next two years.
European Commissioner for Research, Science and Innovation Carlos Moedas said: “Innovative Icelandic companies can now benefit from EU-guaranteed loans up to €107m under Horizon 2020, the EU’s research and innovation funding programme.
“The deal signed today will help these companies to reach their full potential and continue to contribute to economic growth and job creation in Iceland.”
This deal falls under the InnovFin SME Guarantee Facility, which is part of the new generation of financial instruments supported under Horizon 2020.
Under this facility, financial intermediaries are guaranteed against a proportion of any losses incurred on the debt financing covered under the facility.
