The economic impact of the coronavirus crisis in SMEs is the sudden lack of liquidity. That is why the European Commission will provide liquidity to at least 100,000 European SMEs and small mid-cap companies hit by the economic impact of the coronavirus pandemic through an estimated available financing of €8 billion. The European Investment Fund (EIF)  ensures a swift and adequate response to the financing needs of entrepreneurs across Europe.

The European Fund for Strategic Investments (EFSI) under the COSME Loan Guarantee Facility and the InnovFin SME Guarantee under Horizon 2020 are the financial instruments which allows the EIF to provide guarantees worth €2.2 billion to financial intermediaries, unlocking €8 billion in available financing.

The call for expression of interest to financial intermediaries for  the COSME Loan Guarantee Facility (COSME LGF) can be found here and for the InnovFin SME Guarantee Facility (InnovFin SMEG) here. The deadline is until 30 June 2020.

The guarantees will be offered through the European Investment Fund (EIF) to the market, via a call for expressions of interest issued today to several hundred financial intermediaries, comprising banks and alternative lenders. Key features of these guarantees will be:

• Simplified and quicker access to the EIF guarantee
• A higher risk cover – up to 80% of potential losses on individual loans (as opposed to the standard 50%)
• Focus on working capital loans across the EU
• Allowing for more flexible terms, including postponement, rescheduling or payment holidays

SMEs will be able to apply directly to their local banks and lenders participating in the scheme which are listed here

At B2EU Consulting we follow closely the situation in order to inform our clients. For information on how B2EU Consulting could support your organisation in developing a funding strategy and in unlocking different financing tools for your operation in the development sector, please don’t hesitate to contact us at: info@b2eu-consulting.com