EIF Working Paper 2018/052: "The effects of EU-funded guarantee instruments of the performance of Small and Medium Enterprises - Evidence from France"

This paper provides a policy-oriented summary of a study carried out in the context of a recent audit of EU-funded loan guarantee instruments implemented by the EIF. The econometric study assesses the real performance effects of EU-guaranteed loans to SMEs disbursed in France, during the years 2002 to 2016.

On average, French SMEs benefiting from EU-guaranteed loans experienced additional 9% asset growth, 7% sales growth, and 8% employment growth, compared to a control group of similar firms which did not benefit from those guaranteed loans. Effects were typically stronger for smaller and younger firms, while beneficiary SMEs also experienced 5% lower default rates. The study concludes by discussing potential implications for policy makers and further research.

The EIF Working Papers are designed to make available to a wider readership selected topics and studies in relation to EIF´s business. The Working Papers are edited by EIF's Research & Market Analysis and are typically authored or co-authored by EIF staff or are written in cooperation with EIF.