Portugal unlocks €6.5 billion in lending to finance over 40,000 companies

• The InvestEU Fomento-FEI will improve access to more affordable finance for Portuguese SMEs and MidCaps investing in Innovation, Digitalization, Sustainability, Competitiveness and Agriculture

Porto: Today, the Portuguese Prime Minister, Luís Montenegro, announced the largest partnership ever designed by the Portuguese Government with the European Commission and the European Investment Fund (EIF) to support national small and medium-sized enterprises (SMEs), small MidCaps and individuals. The announcement took place in front of more than 1,000 entrepreneurs and business leaders during the event Conversas com Fomento, organized by Banco Português de Fomento (BPF) in Santa Maria da Feira.

The event was attended by the EIF Chief Executive, Marjut Falkstedt, the Minister of Economy and Territorial Cohesion, Manuel Castro Almeida, and the Minister of Agriculture and the Sea, José Manuel Fernandes.

The InvestEU Fomento-FEI expected to mobilize over €6.5 billion of investments, the largest volume mobilized by an InvestEU Member State Compartment across Europe. The EIF has published a Call for Expression of Interest to select the Portuguese banks responsible to channelling loans guaranteed under the programme and the first transactions are expected to be signed before the end of 2025.

The programme aims supporting the transformation of the Portuguese economy in the areas of Innovation, Digitalization, Sustainability, Competitiveness and Agriculture by financing projects developed by over 40.000 SMEs, small MidCaps, and individuals.

“This partnership under the InvestEU Fomento-FEI framework is a cornerstone to support the micro, small and medium companies that entail the investment network of the Portuguese Economy. It is a strong commitment between Portugal and Europe to foster investment for growth”, said the Prime Minister of Portugal, Luís Montenegro.

"Portugal has now a new financing instrument to support business investment by SMEs in strategic areas such as competitiveness, innovation and digitalisation, sustainability, and agriculture. This new partnership effectively complements the set of instruments that BPF is implementing, as Portugal’s national promotional bank, to finance the economy at scale and under competitive market conditions," said the Minister of Economy and Territorial Cohesion, Castro Almeida.

“This new agreement with the Government of Portugal opens a new chapter in our collaboration, building on a series of very successful programmes we have already developed together. Within the InvestEU framework, this new agreement will generate important financial support for tens of thousands of Portuguese companies, driving competitiveness, sustainability and innovation.” said European Investment Fund (EIF) CEO Marjut Falkstedt.

The InvestEU Fomento-FEI will be backed by €450 million of the Portuguese Recovery and Resilience Plan (RRP), €50 million public guarantee from the State Budget, and €490 million of EIF resources. The programme was included in the latest amendment to the National Recovery and Resilience Plan (measure RE-C05-i16 InvestEU Member State Compartment) submitted on 1 February 2025 and approved by the European Council on 13 May 2025.

The EIF guarantee enables the partner banks to offer improved financing terms such as lower interest rates, reduced collateral requirements and reduced down-payment obligations for investment loans. Moreover, with the EIF guarantee, the banks can offer longer maturities and increased financing volumes and support excluded segments such as startups.

Background information

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank Group. It supports small businesses across Europe by improving their access to finance through a broad network of selected financial intermediaries, including banks, mutual guarantee societies, leasing companies, microcredit institutions, and venture capital funds. The EIF develops and provides equity and debt instruments that contribute to the European Union’s objectives in areas such as entrepreneurship, growth, innovation, research and development, green and digital transitions, and job creation.

About the InvestEU Member State Compartment

The InvestEU Member State Compartment allows EU Member States to channel part of their shared management funds, Recovery and Resilience Facility resources, and national funding into the InvestEU Fund through the creation of a specific compartment. This voluntary contribution enables Member States to benefit from the InvestEU guarantee to support specific national priorities. Under this compartment, loans, guarantees, or equity investments can be made available as a complement to other public and private investments.