Finnvera and European Investment Fund agree on EUR 190 million EUR 100 million for Finnish companies

Finnvera and the European Investment Fund (EIF) have signed a guarantee agreement that will enable growth-oriented Finnish companies to receive nearly EUR 190 million in new loan financing over the next two years.

With the agreement, Finnvera will introduce a new SME Guarantee product aimed at improving access to loan financing for growth-oriented SMEs for various investment, working capital and product development needs. The EIF, with its counter-guarantee, guarantees 50% of the SME guarantees granted by Finnvera. It is estimated that at least 2 000 Finnish companies will benefit from the funding provided by the agreement.

This funding is made possible by a guarantee from COSME and the European Fund for Strategic Investments (EFSI), established under the auspices of COSME and the European Investment Program (Juncker Plan). COSME is a financing program for business competitiveness and small and medium-sized enterprises, which aims, inter alia, to facilitate access to finance for SMEs.

The new guarantee will help the shortage of growth-oriented SMEs

The SME Guarantee is an unsecured 80% guarantee for a bank loan of up to EUR 150,000. It is designed to meet the financing needs of growth-oriented SMEs established over three years ago. Finnvera's 80% guarantee is particularly important for companies, such as those in the service, retail or IT sectors, which do not have sufficient real collateral for banks. Nor does Finnvera require a self-financing contribution from companies applying for an SME guarantee.

- In accordance with the Government Program, our goal is to support the diversification of financing options for start-ups and SMEs. Especially in provinces where the real collateral available to companies is limited, this agreement between Finnvera and the European Investment Fund is of great importance for growth-oriented companies, emphasizes Katri Kulmuni , Minister of Economic Affairs .

- The EFSI financing approved by the European Investment Bank Group in Finland is over EUR 2 billion. In terms of population, it is the largest of all EU countries. In terms of gross domestic product, we are ranked eight, which can be considered a good performance, adds Minister Kulmuni.

“Growth often requires financing, and one of our key goals is to enable that growth in Finnish SMEs. The agreement with the European Investment Fund (EIF) will provide better access to loans for growth-oriented SMEs. Applying for our new SME guarantee is also very easy, as the lending bank applies for the company on behalf of Finnvera, says Finnvera's Business Director Juuso Heinilä .





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