Brussels, 16/10/2006 (Agence Europe) - The Commission has approved the Dutch state guarantees scheme for equity funding and loans for SMEs. The guarantee scheme, called “Growth Facility”, is designed to help SMEs expand by covering 50% of possible losses incurred by credit institutions or capital providers. Until June 2012, the guarantee scheme will provide for an annual ceiling of €250 million, up to which sum the Netherlands may underwrite individual default guarantees. The entire budget is expected to come to €900 million, with €85 million in 2006. Individual guarantees could amount to €2.5 million per target SME, and would be valid up to 12 years. Noting that financial institutions from any Member State could apply for guarantee coverage under this scheme, the Commission concluded that the scheme did not constitute state aid. Furthermore, only commercially attractive, healthy target companies are likely to be financed, the Commission added, convinced, too, that the Netherlands had taken all necessary measures to ensure that the scheme would be self-financing. (ab)