Innovative French SMEs receive EU backing
A new €250m EU loan guarantee agreement for innovative SMEs in France has been signed between the European Investment Fund and Banques Populaires-Caisses d’Épargne (BPCE).
The agreement uses the Risk Sharing Instrument (RSI) launched by the European Commission and European Investment Bank Group to ease access to finance for innovative SMEs and small mid- capitalisation companies. The RSI deal will bring total loan financing available to innovative businesses in the EU under the initiative to over €1bn with 12 guarantees signed in ten different countries.
Welcoming the agreement, Máire Geoghegan-Quinn, European Commissioner for Research, Innovation and Science, said: “This agreement is an excellent example of how we can support innovative companies in gaining better access to risk finance. Financing research and innovation and helping those SMEs who take risks to bring ideas to the market will mean more jobs and growth in France and across Europe.”
The European Investment Fund (EIF) and BPCE also announced a second guarantee agreement under the EU’s Competitiveness and Innovation Programme (CIP). This will help BPCE to generate a total portfolio of loans worth €1.8bn to an estimated 50,000 SMEs.
Commenting on the signatures in Paris, the EIF chief executive, Richard Pelly, said: “I am pleased to be signing our first RSI agreement in France and largest in Europe under the new RSI under a FP7 programme in support of innovative SMEs. Extending our relationship with our long-term partner BPCE under the CIP programme, which, through the SOCAMAs, have already supported some 50,000 businesses via the CIP programme will ensure that much needed finance will be quickly channelled to innovation driven businesses across the country.”
The RSI facility will encourage banks to lend to SMEs and small mid-caps in need of investment financing and/or operating capital to support research, development and innovation activities. It aims to encourage banks to provide loans and leases of between €25,000 and €7.5m.
