Finance for Norwegian micro-businesses as EIF signs guarantee agreement with Cultura Sparebank under the CIP Programme

The EIF and Cultura Sparebank have signed a guarantee agreement under the Competitiveness and Innovation Framework Programme (CIP) helping to provide enhanced access to finance for micro businesses in Norway.

Micro enterprises in Norway could now benefit from micro-loans in excess of NOK 12 m (approx. EUR 1.4 m) guaranteed under the CIP which will help to support new entrepreneurs and create jobs.

Cultura Sparebank is the only bank providing microfinance in Norway, partly granting loans in collaboration with Network Credit Norway - a micro finance initiative, providing targeted training for start-ups.

EIF Chief Executive, Mr Pelly said "We are pleased to be working with Cultura in providing access to finance to micro enterprises in Norway.

Cultura Sparebank has developed a sizeable micro-loans portfolio in Norway helping to support micro-entrepreneurs and contributing to the dynamism of this sector of activity within the Norwegian economy."

Social, ecological or cultural "sense" remains at the forefront of Cultura Sparebank's financing strategy.

Commenting on the transaction, Mrs Diana Veidmane-Lampe at Cultura said: "Cultura is pleased to renew its partnership with the European Investment Fund. 

This Guarantee will enable Cultura to provide enhanced access to finance businesses having a positive impact on society. The idea is to assist in the process of establishing local business initiatives, especially to promote the sustainability of local communities. This intervention is both timely and crucial for small start-ups and developing businesses in Norway in terms of job protection and job creation."

This transaction allows the EIF to renew its cooperation with Cultura Sparebank in Norway, following a previous successful partnership under the Multiannual Programme (MAP, CIP's predecessor).

Background information:

The Competitiveness and Innovation Framework Programme (CIP), which spans from 2007 to 2013, has been put in place to boost European productivity, innovation capacity and sustainable growth, whilst simultaneously addressing complementary environmental concerns.

Within the framework of the CIP, the European Investment Fund (EIF) has been allocated EUR 1.1bn to be split between venture capital - with the High Growth and Innovative SME Facility (GIF) - and guarantees - with the SME Guarantee Facility (SMEG).

Under the SMEG, financial institutions are encouraged to enhance access to finance for SMEs.  The facility offers an excellent tool to allocate additional financing volumes for those SMEs that would not otherwise have access to resources and financial engineering instruments because of the increased lending risk entailed.  As such, The SMEG complements and broadens EIF's own product offering.

The EU CIP SMEG Facility gives the EIF the opportunity to play an essential role in supporting sustainable job creation and entrepreneurship in European SMEs. 

About Cultura Sparebank

Cultura Sparebank is a Savings Bank with a specific mission to promote projects with a social, environmental and cultural qualities. Profitability is secondary, but, of course, economic viability of the projects is a prerequisite for financing.

The Bank has been in operation since January 1997 and has several main areas of activity. Cultura has always been, and remains, about transparency and the realisation of social, environmental, and cultural objectives. The Bank offers a range of basic banking products such as current accounts with overdraft facilities and loans for new working capital.

The Bank is also active in the public debate, offering information about alternatives to mainstream economic thought.

About EIF

The EIF central mission is to support Europe's SMEs by helping them to access finance.  EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.

For further information, please contact David Yormesor, d.yormesor@eif.org