General Principle

Through EIF, the EU partly guarantees mezzanine financing granted by local institutions to SMEs. The risk-sharing arrangements established between EIF and each of its local partners, known as “Intermediaries”, aim to stimulate the provision of equity finance to SMEs, to help them improve their financial structure and achieve business transfers.

Please click here to view the Guarantee Policy and Operational Guidelines governing the Equity Guarantee Window.

The Product

Depending on the type of Intermediary and its activity, EIF can issue:

• Direct guarantees to Intermediaries that lend to SMEs. EU Guarantees partially cover portfolios of mezzanine financing for SMEs.
• Indirect or counter-guarantees to Intermediaries that issue guarantees covering mezzanine financing for SMEs.

Main Product Features (applicable both to direct and indirect EU Guarantees)

• Guarantee rate: for each investment/guarantee in the portfolio, up to 50% of the Intermediary’s commitment.
• Guarantee cap: payments are capped at a pre-agreed amount, which is a percentage of the total amount covered by the EU Guarantee. The percentage is negotiated with EIF and is based on the expected cumulative losses incurred by the Intermediary.
• Fees: EU Guarantees for equity are provided free of guarantee fees. However, in order to encourage full use of the available budget, commitment fees may be charged.
• Guarantee maturity: 10 years for each investment covered.
• Investment criteria:
  • Beneficiaries: SMEs as defined by the EU - click here for the SME definition
  • Purpose of investment: seed, start-up and mezzanine finance
  • Minimum maturity: 12 months
  • Maximum investment amount: EUR 500,000
• Special EU requirements: Given the public nature of the EU Equity Guarantee Window, certain EU conditions apply. Clickhere for further information about the EU requirements.

Please click here to view the application procedure and download the relevant application information.

Important information for small businesses (SMEs)

Please note that SMEs themselves cannot obtain a guarantee directly from the EIF and should therefore not approach EIF.Information for SMEs about sources of loan finance backed by the European Union will be available on a dedicated website that is presently under construction. Links to this SME-dedicated website will be published on the EIF website in due course.