EIB and Santander sign agreement to finance SMEs and midcaps
The European Investment Bank (EIB) has signed a EUR 400 million loan agreement with Banco Santander to finance the investment projects of SMEs and midcap companies (with up to 3 000 employees), doubling the EUR 400 million granted by the EIB in September 2012 to EUR 800 million. Banco Santander will match this EIB funding with the same amount, meaning that a total EUR 1 600 million will be pumped into financing SMEs.The agreement will serve to support the economic development of small businesses as well as financing long-term investment and working capital needs.
This loan has been granted under the Bank’s policy of supporting the economic development of small and medium-sized businesses by providing credit on preferential terms including longer maturities, flexible disbursement schedules and lower interest rates to foster job creation. These improved terms will be passed on to the end borrowers.
In 2012, the EIB provided a record EUR 13 billion worth of loans for small and medium-sized businesses, reaching more than 200 000 companies throughout Europe. In Spain that year, it made available EUR 2 680 million for new credit lines designed to finance the investment projects of SMEs and midcaps.