EIF and Irish bank deal backs innovative SMEs
The European Investment Fund (EIF) and Bank of Ireland have signed the first agreement in the country to increase lending to innovative SMEs, as well as small mid-caps as part of the InnovFin programme.
The new agreement allows the Bank of Ireland to provide finance to innovative companies in Ireland for a total of €100m over the next two years with the support of a guarantee provided by the EIF, backed under Horizon 2020. It is the first InnovFin SME Guarantee signature in Ireland, enabling the Bank of Ireland to offer innovative companies additional financing at favourable conditions.
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “This first agreement under InnovFin SME Guarantee is a tangible proof that the EU actively supports this objective by facilitating investment in SMEs, the biggest job creators in Ireland and across the EU.”
The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to SMEs and small mid-caps (firms with fewer than 500 employees) in need of investment and/or operating capital to finance RDI activities, with EU financial support. Financial institutions are being selected by the EIF following a call for expression of interest for financial intermediaries across Europe.
Commenting on the signature, EIF Chief Executive, Pier Luigi Gilibert said: “I am pleased to be signing the first InnovFin deal in Ireland with Bank of Ireland that will reinforce investment by companies across the country. Providing support together with Bank of Ireland will ensure that innovative companies will be able to access finance over the next two years”.
The InnovFin SME Guarantee provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5m.
