The European Investment Bank (EIB) has granted a EUR 300 million loan to Novo Banco to facilitate the financing of projects undertaken principally by SMEs (firms with up to 250 employees) and midcaps (firms with up to 3000 employees). The loan agreement was signed in Lisbon today.
In addition Novo Banco will provide another EUR 300 million, so that the total amount made available to SMEs and medium-sized companies will amount to EUR 600 million.
The EIB loan will finance small-sized projects in the areas of industry, tourism and services, renewable energy, environmental protection and research and innovation. The majority of the funds are expected to be allocated to projects in convergence areas in Portugal. The loan will help to ensure access to funding of favourable terms: a low interest rate and long maturity. This will in turn help foster economic activity and employment creation.
This credit line will support the financing of individual investment projects of up to EUR 25 million in the case of SMEs and up to EUR 50 million in the case of midcaps, mainly in Portugal.
In 2014, the EIB Group provided a record EUR 25.5 billion for small businesses, reaching more than 290 000 companies throughout Europe. In Portugal that year, the EIB signed loan agreements totalling EUR 1 319 million including EUR 875 million for SMEs and Midcaps.