EU support for SMEs in Poland following EIF and Idea Bank InnovFin agreement

The European Investment Fund (EIF) and Idea Bank have signed the first InnovFin SME Guarantee agreement in Poland with funding from the European Union to support Small and Medium-sized Enterprises (SMEs) and Mid-caps.

The new InnovFin agreement allows Idea Bank to provide finance to innovative companies in Poland for a total of up to PLN 80m (EUR 20m equivalent) over the next 2 years with the support of a guarantee provided by the EIF and backed under Horizon 2020, the EU Framework Programme for Research and Innovation. This is the first InnovFin SME guarantee signature in Poland, enabling Idea Bank to offer innovative companies additional financing at favourable conditions.

The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to SMEs and small mid-caps (firms with fewer than 500 employees) in need of investment and/or operating capital to finance research, development and innovation activities, with EU financial support. Financial institutions are being selected by the EIF following a call for expression of interest for financial intermediaries across Europe.

Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “The latest Innovation Union Scoreboard shows Poland as one of the fastest growing innovators in Europe. I am certain that the InnovFin SME Guarantee agreement signed today will help innovative companies boost even further growth and the creation of jobs in the country”.

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 8.8bn at end 2014. With investments in over 500 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 350 operations at end 2014, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Idea Bank

Idea Bank was founded to support entrepreneurial people in turning their business dreams into reality. It began operating in 2010, gradually building a complex capital group offering innovative products and services which combine traditional banking with complementary industries, such as accounting, factoring, leasing and collection services. Lying at the core of the bank’s functioning is the ‘Entrepreneurs for entrepreneurs’ concept, which allows for building sustainable relations with the clients and delivering products that meet their needs. Wide product portfolio, innovative marketing activities, and flexible, multi-channel distribution network enable the Idea Bank Group to successfully reach its potential clients. This approach is explicitly welcomed by the whole banking sector – Polish ‘Forbes’ magazine named Idea Bank the best corporate bank thrice in a row: in 2011, 2012 and 2013. Idea Bank’s innovativeness has also been noticed in the international arena.

About InnovFin SME Guarantee

InnovFin SME Guarantee provides guarantees and counter-guarantees on debt financing of between EUR 25,000 and EUR 7.5m, in order to improve access to loan finance for innovative small and medium-sized enterprises and small midcaps (up to 499 employees). The InnovFin SME Guarantee is implemented by the European Investment Fund (EIF), and will be rolled out through financial intermediaries (banks and other financial institutions) in EU Member States and Associated Countries. Under the InnovFin SME Guarantee, financial intermediaries will be guaranteed by EIF against a proportion of their losses incurred on the debt financing. InnovFin SME Guarantee is part of InnovFin - EU Finance for Innovators, a new range of EIB Group (including EIF and EIB) products to facilitate access to finance for innovative businesses. This transaction is supported with the financial backing of the European Union under Horizon 2020 Financial Instruments.

Press contact:

EIF: David Yormesor, tel: +352 42 66 88 346, e-mail : d.yormesor@eif.org

Idea Bank: Klaudia Klimkowska, tel.: + 48 697 673 264, e-mail: klaudia.klimkowska@ideabank.pl