EIF continues to support European banks’ prferential loans to SMEs

The European Investment Fund and Danish Bank Roskilde Bank A/S will offer an alternative to VC financing for SMEs.

The European Investment Fund (EIF) has signed a guarantee agreement with Roskilde under the Growth and Environment Scheme in Denmark.

In order to give a helping hand in their early life, the bank and the EIF will jointly back preferential loans arranged by the bank to SMEs. The total amount of such loans is E20m (DKK 150 million).

Under the Growth and Environment Scheme, smaller companies with up to 100 employees receive loans at favourable terms for environmentally-friendly investments [defined as investments that produce significant environmental benefits even if the environment is not the main aim], or that are carried out by companies active in the eco-industry.

Financial institutions which take part in the scheme are able to offer better financing terms due to a free-of-charge guarantee from the EIF, through sponsorship from the European Union. The EIF has entered into guarantee agreements with 34 financial institutions in all 15 Member States of the European Union under the scheme, totalling E1.4bn.