Belgian SMEs to benefit from €100m in EU-backed loans
Small and medium sized businesses in Belgium will get easier access to risk capital thanks to a new EU-backed loan guarantee facility under the Horizon 2020.
A deal signed on Friday by the European Investment Fund (EIF) with Belgian bank Belfius will allow the financial institution to enter into new loan agreements with SMEs and small mid-caps for a total of €100m over the next two years. The loans to finance innovation activities will be guaranteed by the EIF and the EU by up to 50% under the InnovFin SME Guarantee Facility, which targets early and development stage companies.
Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “The InnovFin SME Guarantee deal signed today will be a welcome boost to innovative Belgian SMEs. It will open up new ways of funding, and complements a previous deal under InnovFin that will provide a total of €300m in finance to innovative midcap companies in Belgium.”
The InnovFin SME Guarantee Facility is part of a new generation of financial instruments supported under Horizon 2020. The scheme 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). The facility is managed by the EIF and is rolled out through financial intermediaries in EU member states and associated countries.
