Resources

EU Structural Funds

JEREMIE’s resources are principally derived from EU Structural Funds for the funding period 2007-2013, the monies issued by the European Commission to EU Member States and their Regions for development. Specifically, JEREMIE deploys Structural Funds that are derived from the European Regional Development Fund (ERDF) and the European Social Fund (ESF). National and regional public authorities of the EU Member States responsible for the EU Structural Funds allocation may opt to participate in a JEREMIE framework for financial actions.

National contributions

The Member State’s national contribution (a co-finance element of ERDF funds) may be allocated to JEREMIE actions. These may be financed from existing sources or through credit, for example, via the EIB.

EIB Group

Operational synergies between the EIB Group (EIF and EIB) have been enhanced to support the implementation of JEREMIE. Additional resources from EIB and other international finance institutions may be mobilised to support the initiative, if necessary. It is possible under JEREMIE that EIB could finance the national co-financing component of the contribution from ERDF and ESF Operational Programmes to the JEREMIE Holding Fund.

Leverage effect

JEREMIE’s financial instruments are conceived to create a leverage effect on the managed funds. Market-based instruments create opportunities for public-private cooperation. In addition to direct contributions from public and private funding sources, instruments such as risk capital and equity-guarantees or loan-guarantees reinforce SMEs’ capacity to raise additional financing by strengthening their capital base or by addressing a portion of the financing risk which some investors or lenders are unwilling to take.

Recycling of funds

JEREMIE resources that are repaid, for example, when returns are received on venture capital investments, or micro-loans are reimbursed to micro-finance institutions, are made available for reinvestment. Resources are reinvested into the JEREMIE instruments and are re-used in favour of SMEs. The revolving character of funds is a key advantage of the JEREMIE initiative.

Generated interest shall be used within the Holding Fund structure to ensure the continuing sustainability of the Fund itself (in line with Art. 78 (7) of the EC Regulation 1083/2006).

How JEREMIE will help SMEs

The JEREMIE initiative will improve the SME financial environment at local level. Firstly, JEREMIE will increase the supply of SME finance in the regions, by matching product expertise and decision on investment schemes which are focussed on assisting SME growth with local need. JEREMIE will also contribute to the general improvement of regional financial conditions, by introducing flexible and tailor-made actions such as decreasing lending interest rates through JEREMIE guarantees, reducing the need for collaterals through the implementation of guarantee instruments, disseminating equity finance, and enhancing the availability of micro-credit.