Signature(s)
Summary sheet
- Credit lines - Credit lines
The operation aims to facilitate longer-term financing for small and medium sized enterprises (SMEs) and Midcaps active in agriculture/bioeconomy sector in France. At least 30% of funding will be dedicated to young farmers (below 41 years old) while a 60% will be dedicated to climate action projects.
Financing of small/medium projects carried out by small and mediumsized enterprises (SMEs) and mid-caps in the agriculture and bio-economy sector mainly in France with at least a 60% contribution to climate action.
The loan is expected to support EU policy objectives, such as modernisation in the agriculture sector, renewable energy and rural development. It also supports the New CAP 2023-2027 that combines higher environmental, climate and animal welfare ambitions with a fairer distribution of payments, especially to young farmers (YF).
The project will ease constraints on access to finance faced by French SMEs in the agricultural and bioeconomy sectors. The beneficiaries face deep market failures related to lack of track-record, insufficient farm net asset value to collateralize and high screening costs for small investments. With this in mind, the project will enable SMEs and young farmers to benefit from financing with tenors that match the economic life of the investment undertaken, as well as from transfer of financial advantage and complementarity that prompts the intermediary to match the EIB contribution. Furthermore, it will mobilize private sector investment, contributing to the sustainability of both sectors. Overall, the project can generate positive externalities in terms of competitiveness in a key sector for France and the EU and in terms of climate change mitigation via investments in emissions reduction. It can also help strengthen EU socio-economic cohesion. This operation supports the agriculture/bioeconomy sector in general.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.