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The European Investment Bank (EIB), the European Union’s long-term lending institution, has granted a new loan to Banco Comercial Português (Millennium bcp) to finance the investment projects of SMEs and midcaps. The EUR 300 million loan agreement was signed today in Lisbon by EIB Vice-President Román Escolano and the President of Millennium bcp, Nuno Amado.

Most of the loan will serve to finance investments promoted by SMEs and midcaps, but part of it could also be allocated to other entities promoting projects in different sectors of industry and services, infrastructure, environment and human capital. The loan may also be used for projects promoted by municipalities that benefit from the InnovFin SME guarantee of the European Investment Fund. The EIB loan may also be used to support R&D and agriculture.

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 bulk of the total loan amount is expected to be allocated to projects in Convergence regions.

The EIB loan, which will be matched by a further EUR 300 million of credit by Millennium bcp, will provide long-term funding on attractive terms, which the bank will pass on to its borrowers. The funds will thus stimulate investment and boost economic growth and employment by SMEs and midcaps in Portugal.

The new loan illustrates the continuation of a successful partnership between the EIB and Millennium bcp and builds upon numerous other credit lines in a relationship that started more than 20 years ago for the financing of SMEs and other projects.  

Financing small businesses is one of the EIB’s investment priorities. Last year alone, the EIB and its subsidiary the European Investment Fund provided a record amount of around EUR 22 billion for SMEs and midcaps, benefiting some 230 000 companies across Europe. In Portugal, it made available EUR 595 million in 2013 for new credit lines designed to finance the investment projects of SMEs and midcaps.