FAIRE (Fonds d’Aide À l’Investissement Régional pour les Entreprises) is the second-generation holding fund seeking to improve access to finance for final recipients, set up in cooperation with the French Region La Réunion. It is managed by the EIF under the current EU funds programming period 2021-2027.
It builds on the successful implementation of the previous initiative - La Financière Region Réunion. The first initiative leveraged around EUR 50 million of public resources (EU funds and regional own resources) resulting in over EUR 100 million of financing provided for final recipients across more than EUR 150 million of catalysed investments. Through this landmark initiative, more than 600 SMEs operating in the region benefitted from loans or equity support while almost 1,000 jobs were sustained.
The new FAIRE initiative is based on a funding/portfolio risk-sharing instrument with a generalist focus to facilitate access to finance at better terms (reduction of interest rates and/or collateral requirements) for small businesses (SMEs, without any specific constraints in terms of sector or activity).
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The following summary is only indicative. For full information please refer to the Call documents below.
Product details
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Focus
The F.A.I.R.E mandate is a financial instrument designed to address market failures in SME access to finance in La Réunion. It operates through risk-sharing loans (PRSL) co-financed by the European Regional Development Fund (ERDF) and the Region. The mandate targets micro and small enterprises, especially those with fewer than 10 employees or less than 3 years of existence. It aims to strengthen liquidity and credit risk protection for financial intermediaries.
Objective
The main objective is to improve access to bank financing for eligible SMEs under preferential conditions. At least 30% of the portfolio should support ecological transition and environmental sustainability. The instrument aims to unlock EUR 100m with significant interest rate reduction for SMEs based in that Region. It also promotes visibility of EU and regional support through labelled financing and public communication. Ultimately, it aims to stimulate regional economic development through targeted and inclusive financial support.
Guarantee terms
Benefits for recipients
Type of instruments
Max (counter-)guarantee rate
Max cap rate
Guarantee fee
Consistency with state aid
NoLending features
Type of financial intermediary
Target final recipients
Maximum debt principal amount
€2.5m iDebt financing maturity range
Growth stage
Eligibility criteria
Eligible applicants are financial institutions duly authorized, according to applicable legislation, to carry out lending activities to final recipients established and/or operating in Region Réunion.
For each of the financial instruments, the documents to be downloaded below contain details of the application process, the required content of the Calls for Expression of Interest, and the indicative terms and conditions.
More information about the eligibility and exclusion criteria is available in each of the relevant Calls for Expression of Interest below. For each call, please also download and complete the related templates. You will find the Integrity Questionnaire as well as the Ownership structure templates for both the calls in the related documents and PDFs.
Application closed
The call closed on 29 February 2024, therefore we are not accepting further applications from financial intermediaries.
The Eligibility Period is up to 31 December 2029.
Questions regarding the Calls for Expression of Interest for Le Fonds d’Aide À l’Investissement Régional pour les Entreprises can be submitted via lareunionfrsp@eif.org and lareunionequity@eif.org.