European Investment Fund (via The SME Initiative) offers loss protection and potential capital relief to selected financial intermediaries (e.g. banks, leasing companies, guarantee institutions, debt funds) at an advantageous cost. In return for this risk-sharing, the financial intermediaries provide SME loans, leasing and/or guarantees at favourable terms (e.g. reduced interest rates). The SME Initiative is currently operational in Spain and in advanced negotiations with Malta.
The aim of the initiative is to generate at least EUR 3.2 billion of SME financing over the next few years in 16 Spanish regions.
Source: European Investment Fund