The European Investment Bank is making a EUR 50 million loan available to Crédito Agrícola to finance eligible projects promoted by SMEs and midcaps, with particular focus on the primary sector of the Portuguese economy. The finance contract was signed by EIB Vice-President Román Escolano and by Crédito Agrícola President Licínio Pina and a Member of the Board Renato Feitor, today in Lisbon.
Crédito Agrícola will top-up the EIB funds, so that the total volume of resources made available to SMEs will amount EUR 100 million.
This is the first SME financing loan signed between EIB and Crédito Agrícola. The EIB will finance up to 100% of the total project cost for SMEs and midcaps (with a maximum of EUR 12.5 million per project) and up to 50% for other types of projects. The EIB loan will provide SMEs with long-term finance for their investment projects and credit lines on favorable terms to finance the working capital requirements.
The EIB loan will finance small projects in the areas of agriculture, forestry, fishing, agro-tourism and services, industry, environment, human capital, research and development. The loan may also be used for projects promoted by municipalities or other promoters of eligible projects. The loan corresponds well with the renewed policy focus of the EIB on the agricultural food sector.
Most of projects are expected to be located in convergence areas of Portugal where Crédito Agrícola has a particular high coverage. The EIB financing will contribute to strengthening the productivity and competitiveness of SMEs and employment 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.