CIP 2007-13 EU Guarantees

Under the SME Guarantee Facility (SMEGF), EIF provides capped guarantees partially covering portfolios of financing to SMEs. These are known as EU Guarantees.

The SMEGF is funded by the European Community under the CIP 2007 - 2013 (Competitiveness and Innovation Framework Programme).
EIF manages the SMEGF on behalf of the European Commission. Read more about CIP on the European Commission website

The overall objective is to improve access to finance for the start-up and growth of SMEs, and investment in innovation activities, including eco-innovation.

The SMEGF comprises of four business lines, known as "windows":

• Loan Guarantees cover portfolios of SME mid- to long-term debt finance targeting SMEs and focuses on investment financing.

• Micro-Credit Guarantees cover portfolios of micro-credits to encourage financial institutions to provide financing to microenterprises, especially start-ups. 

• Equity Guarantees cover portfolios of investments in SMEs in the seed and start-up phases; Quasi Equity Guarantees are available to cover portfolios of mezzanine financing. Equity and Quasi-Equity Guarantees aim to help SMEs improve their financial structure.

• Securitisation: guarantees to support securitisation transactions so that financial institutions may mobilise additional debt financing for SMEs.

Financial intermediaries wishing to build up such portfolio of financing to SMEs and interested in applying to benefit from CIP coverage must be established and operating in one of the following participating countries.