Flexible SME funding (JEREMIE)
Small and medium-sized enterprises (SMEs) can access finance and financial engineering products through the JEREMIE programme. National and regional authorities can opt to deploy money from EU Structural and Social Funds in the form of market-driven financial instruments instead of offering grants. A major advantage is that unlike grants, which can only be spent once, a pool of funds can be re-invested several times. Support is provided to selected local financial intermediaries via national or regional governments.
The JEREMIE "toolbox" of financial instruments includes:
- guarantees, co-guarantees and counter-guarantees,
- equity guarantees,
- export‑credit insurance,
- venture capital,
- business angel matching funds
- investment in technology transfer funds
JEREMIE stands for the Joint European Resources for Micro to Medium Enterprises. It is a joint initiative of the European Commission and the EIB Group, mainly through the European Investment Fund.
The main benefits of JEREMIE are:
- Flexibility: Contributions from the Operational Programmes to the JEREMIE holding fund will be eligible for interim up-front payments by EU Structural Funds, giving managing authorities more flexibility in allocating these resources.
- Benefits of a portfolio approach: The holding fund will be able to re‑allocate the resources to one or more financial products in a flexible way, depending on demand. The umbrella fund approach gives a diversification of risk, as well as active cash flow management to allow for a swift response to changing market requirements.
- Recycling of funds: The holding fund is of a revolving nature, receiving repayments from the financial intermediaries for further investment in the SME sector. This makes SME support via EU Structural Funds sustainable, unlike the pure grant approach.
- Leverage: There is the potential ability to engage the financial sector either at the holding fund level, with additional capital from financial institutions, or at the level of financial instruments, through co‑financing.
- Advice: Some regions would benefit from the EIF's expertise as a holding fund manager. When JEREMIE is managed by another body, the EIF can also advise in areas such as holding fund cash flow management, holding fund structuring, product design in line with regulation, reporting and monitoring, corporate governance due diligence/second opinions, setting‑up of financial vehicles, etc.
More information can be found on the dedicated website: