sses need advice and help when applying for EU funding, it seems important to me to explain the practical details of the EU SME funding programs in more detail. I have therefore held in-depth consultations with the European Investment Bank and with bank officials from EU correspondent banks. I would like to summarize the results in this article as follows:
The European Commission welcomed the Council decision to adopt the next long-term EU budget for the period 2021-2027, which is the final step in the adoption process. With this decision, all the conditions have now been fulfilled for the next multiannual financial framework for 2021-2027 to be in place as of 1 January 2021. As a result, €1.074 trillion [in 2018 prices] will become available for beneficiaries of EU funding during the next seven years.
President Ursula von der Leyen said: “With NextGenerationEU and the new long term budget, we will be able to provide European people, businesses, regions and cities with the support they urgently need to recover from the coronavirus pandemic. Today is a day of hope for Europe! We will build a greener, more digital and more resilient Europe, ready for today’s and tomorrow’s challenges”.
The EIB- European Investment Bank
provides support to small and medium-sized enterprises (SMEs) and mid-caps through “intermediated loans”, whereby the EIB makes loans to local banks and other intermediaries which subsequently on-lend to the final beneficiaries.
Promoters are requested to apply directly to one of the intermediary banks and financing institutions, which operate on a national, regional or local level. The conditions of financing (interest rate, grace period, loan period etc.) are determined by the EIB partner bank. Within this context, it is up to the partner bank that examines the application and bears the credit risk, to decide whether or not to finance the project. Requirements for application may vary according to the respective intermediary, and the EIB does not take part in this process.
Who is eligible
Depending on the criteria agreed with a specific intermediator, the following final beneficiaries are eligible:
What is eligible
The intermediated loans are to finance small investments by:
SMEs and mid-caps into tangible and intangible assets, including purchase or renovation of assets, long-term working capital, etc.
Local authorities and public sector entities or private promoters of any size, in projects promoting at least one of the EIB’s priorities.