Brussels, 12/06/2014 (Agence Europe) - On Thursday 12 June, the European Commission and the European Investment Bank Group (EIB) launched a new generation of EU financial instruments (InnovFin) and advisory services to help small, medium and large innovative firms access finance more easily. €24 billion of investment could be mobilised.
This new generation of financial instruments consists of five different financial products ranging from guarantees for intermediaries that lend to SMEs to direct loans to companies. Part of the financing will be covered by the EIB group and the other from reserve funds (€2.7 billion) as part of the research and innovation framework programme (Horizon 2020). No prior distribution between sectors, countries or regions is planned. Countries involved in Horizon 2020 will be able to participate in it.
The EIB Group consists of the European Investment Bank and the European Investment Fund (EIF). The European Investment Bank will provide loans to medium to larger companies, or guarantees to banks lending to them. The EIF will provide guarantees to banks lending to small and medium-sized firms and - at a later stage - invest in venture capital funds providing start ups and fast-growing firms with equity.
All the different InnovFin products could help to raise more than €24 billion for research and innovation investment (R&I) in small, medium and large enterprises, as well as for companies promoting research infrastructure projects. The biggest amount of financial support could consist of a tranche of €300 million as part of the five “InnovFin Large Projects”. The Commission believes that €48 billion in final investment could be generated. (JK)