First InnovFin SME guarantee deal signed in Sweden
© Swedish Ministry of Industry 23 January, 2015

First InnovFin SME guarantee deal signed in Sweden

The European Investment Fund (EIF) and Swedish company Almi Företagspartner have signed the first InnovFin SME guarantee agreement in the country under Horizon 2020 to finance innovative companies.

The EIF-Almi deal sees increased lending to innovative SMEs as well as Small Mid-caps under InnovFin, an initiative supported by the European Commission and the European Investment Bank (EIB) Group. The new agreement allows Almi to provide innovative companies in Sweden with access to a total of SEK 1.2bn (~€127.5m) of financing over the next two years, with the support of a guarantee provided by the EIF and backed under Horizon 2020.

Commenting on the signature, EIF chief executive Pier Luigi Gilibert said: “I am pleased to be signing our first Swedish InnovFin SME Guarantee agreement here in Stockholm with Almi for the benefit of businesses in Sweden. Almi’s expertise in financing small businesses and start-ups will ensure that together we can support even more innovative businesses in Sweden over the next two years.”

Adding his thoughts, Mikael Damberg, Swedish Minister for Enterprise and Innovation, said: “Sweden is one of the first countries to sign an agreement with EIF to increase lending to innovative Swedish enterprises. This will give SMEs enhanced possibilities for growth and employment. The government’s aim is that Sweden will have the lowest unemployment rate in the EU by 2020. In achieving that goal, innovative companies are very important.”

It is the first InnovFin SME guarantee signature in Sweden and the third in Europe since the start of the scheme in 2014. This agreement will also allow Almi to provide enhanced access to finance to entrepreneurs in Sweden, especially those who face difficulties in accessing financing for early stage innovative projects.

Carlos Moedas, European Commissioner for Research, Science and Innovation, said that Sweden had a “long tradition of fostering innovation” and that the new agreement will help intensify innovation further, bringing “a new source of credit for Swedish SMEs under Horizon 2020”.

The InnovFin SME Guarantee is part of ‘InnovFin – EU Finance for Innovators’, a new range of EIB products to facilitate access to finance for innovative businesses. Products include guarantees for intermediaries that lend to SMEs as well as direct loans to enterprises.