Supports SMEs with risk financing and access to finance.
The European Investment Fund (EIF) is a leading developer of risk financing for entrepreneurship and innovation in Europe. Its central mission is to support small and medium-sized enterprises (SMEs) by enhancing their access to finance. The EIF designs and develops financial instruments that absorb part of the risk taken by banks, guarantee institutions, microfinance lenders, and funds when financing SMEs, encouraging funds to invest and banks to lend[1][2]. The EIF focuses on areas such as entrepreneurship, growth, innovation, employment, social inclusion, regional development, climate action, and sustainability. It works closely with the European Commission and the European Investment Bank (EIB) to ensure that its interventions align with EU policy priorities. The EIF's activities include equity investments in venture and growth capital funds, guarantee provision to intermediaries in SME financing, and support for inclusive finance initiatives[2][5]. In terms of financial resources, the EIF has significant capacity. For example, under the InvestEU program, the EIF expects to leverage around €11 billion and mobilize more than €145 billion by 2027[3]. The EIF does not provide a typical project financing amount, as its support varies widely depending on the specific needs of SMEs and the financial instruments used. Criteria for receiving funding include alignment with EU policy objectives, potential for growth and innovation, and the ability to address market gaps[2][5]. Recent projects and initiatives include the Progress Microfinance Facility, which aims to increase access to finance for disadvantaged individuals, and the InvestEU program, which has supported numerous SMEs across Europe. The EIF has also partnered with over 300 financial intermediaries to provide financing to SMEs[4].
