Description
The EIB supports access to finance and business development through intermediated lending, in particular Multiple Beneficiary Intermediated Loans. Under this scheme, the EIB provides loans to financial intermediaries under more favourable conditions compared to the market, either directly or indirectly (through public promotional institutions). This impact assessment addresses the following question: what is the impact of EIB intermediated lending on recipient firms’ performance relative to similar firms that did not receive an EIB intermediated loan (but may still receive other forms of finance)?
To assess the impact of the EIB intermediated lending on firms in the EU, this report presents a statistical analysis that measures the performance of supported firms relative to similar firms that did not access an EIB loan. The impact assessment encompasses loans provided to 96,830 businesses between 2008 and 2017, the largest sample of EIB beneficiaries analysed to date.
This counterfactual analysis estimates the impact of EIB intermediated lending using data for the treated EIB loan beneficiaries and the control group before and after receiving an intermediated loan. The results show that, relative to their peers, EIB loan beneficiaries experience significantly higher employment growth and faster firm growth. They also substantially increase their investment in the years following the loan, as well as their productivity and innovation activities. Benefits are greater for smaller firms and those is less-developed regions.
