The EU bank

EIB loans for SMEs are intermediated through financial intermediaries (local partner banks). The EIB requires the intermediary to match the funds provided by its loan with at least the same amount, thus creating a leverage effect. The intermediary must transfer a financial advantage to the SME reflecting the impact of EIB’s funding. The intermediary has to clearly inform the SME of the favourable terms made possible by the EIB’s involvement.

The main criteria for selecting local partner banks are :

• the credit worthiness of the financial intermediary;
• its activity with SMEs and its capacity to effectively select SMEs;
• its respect of the rules for EIB loans to SMEs.

For whom ? All autonomous SMEs with fewer than 250 employees in the 27 EU Member States are eligible, as are MidCaps (autonomous enterprises with less than 3,000 employees). The subsidiaries or holding companies of groups with more than 250 employees are not eligible.  All economic sectors are eligible except for a limited number of exclusions (see excluded activities).

What investments are eligible ? All tangible and intangible investments necessary for a small business to develop, such as purchases of plant and equipment, R&D expenditure, building up or taking over distribution networks in domestic or other markets within the EU, company transmission in order to safeguard economic activity (for a buy-out cost of not more than EUR 1 million).

Land purchases can be included if they are essential to the project. The purchase of farm land is totally excluded. 

For what amounts ? Maximum cost of investment is EUR 25 million. The EIB’s contribution can be up to 100% of the investment, with a maximum of EUR 12.5 million.

How do SMEs obtain an EIB loan ? Small businesses cannot apply directly to the EIB. They should address their loan application to the commercial banks that have received an EIB credit line (list attached). The partner bank who bear the credit risk is entirely responsible to decide whether or not to grant the loan.