Danish SMEs to gain from improved innovative financing

A new deal has been signed between the European Investment Fund (EIF) and a Danish state investment fund, offering innovative SMEs greater access to risk financing.

The deal allows Vaekstfonden to enter into new loan agreements with innovative small and medium-sized businesses for an amount up to DKK 1 billion (~€130m). The loans will be guaranteed up to 50% by the EIF and the EU under InnovFin SME Guarantee, part of a new generation of financial instruments supported under Horizon 2020.

Commenting, European Commissioner for Research, Science and Innovation Carlos Moedas said: “Denmark is a champion of turning ideas into viable businesses. The InnovFin SME Guarantee will add to this zeal, creating jobs and growth for our citizens and increasing competitiveness in Denmark and the EU.”

The InnovFin SME Guarantee provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5m in order to improve access to loan finance for innovative SMEs and small midcaps (up to 499 employees).