Guarantees in support of SMEs, mid-caps and other objectives
The EIB guarantees unlock additional financing for small- and medium-sized enterprises or mid-caps by covering a portion of possible losses from a portfolio of loans. The European Investment Fund, part of the EIB Group, also provides guarantees for SME portfolios.
Four key benefits
Here are the benefits of guarantees in support of SMEs, mid-caps and other objectives
Extended credit limits
Alleviation of internal limits to extend lending (e.g. due to concentration issues by sector or borrower).
Credit risk protection and possible reduction of the portfolio’s economic capital allocation.
Tenor of the guarantee linked to the maturity profile of the underlying exposure.
Funded or unfunded guarantee structures can both be considered.
Find out if financial support might be available to you
Who is eligible
National promotional banks and institutions
Other financial institutions
What is eligible
The Bank can share risk on assets aligned with one or more EIB priorities. Those assets can be either:
Pre-existent, where the guarantee comes with the obligation to create a new portfolio of loans at a pre-defined volume or (a de-linked structure)
To be created during an agreed ramp-up period (usually two to three years) or until the portfolio reaches a pre-defined volume (a linked structure).
Replenishment of existing portfolio may be considered on a case-by-case basis. Reimbursement for a fixed percentage of incurred losses typically amounts to a maximum of 50%.
We have aligned all our financing activities with the principles and goals of the Paris Agreement, a commitment that builds a pathway towards low greenhouse gas emissions and climate-resilient development.