Covid-19: Commission, EIF Announce €8bn in Urgent Relief for Hard-hit SMEs
In efforts to facilitate cash flows for 100,000 small and medium-sized businesses impacted by the coronavirus (Covid-19) pandemic, the European Commission and the European Investment Fund (EIF) unlocked 8 billion euros in funding this week.
More specifically, the guarantees – to be made available this month through local banks and lenders – will offer:
– simplified and quicker access to the EIF guarantee,
– higher risk cover – up to 80 percent of potential losses on individual loans,
– focus on working capital loans across the EU,
– allow for more flexible terms, including postponement, rescheduling or payment holidays.
For program banks and lenders in Greece, press here.
Financial intermediaries with existing EIF deals under the COSME and InnovFin programs can now access the new guarantees immediately upon request.
Other financial intermediaries can access the guarantees following a swift application process.
SMEs will be able to apply directly to their local banks and lenders participating in the scheme, listed here.
In the meantime, the EIF said that it would publish the full list of EIF intermediaries for Covid-19-related financing support as soon as the relevant financing agreements have been concluded.
“The EIF is working intensively to ensure a swift and adequate response to the Covid-19 virus outbreak and we are pleased to be launching this new 8-billion-euro initiative with the Commission today,” said EIF Chief Executive Alain Godard, adding that the EIB Group would continue to work on finding additional tools to quickly meet the financing needs of entrepreneurs across Europe.
For more information on the EIB Group’s response to the Covid-19 pandemic (accessing finance for SMEs and mid-caps), press here.
Last month, the EU set up a 37-billion-euro response initiative to support the healthcare sector, employees and SMEs impacted by the coronavirus (COVID-19) outbreak.