How does EIF contribute to EFSI

As part of the EIB Group, EIF is committed to the implementation of EFSI. The investment volume expected to be triggered under the EFSI SME Window by summer 2018 amounts to €75bn. This entails an estimated fifteen-fold leverage, meaning that every €1 guaranteed by EIF would generate €15 of investment in the real economy, at the level of SMEs and mid-caps. Year-end 2015 results lend support to the accuracy of this initial prudent estimate. EIF is delivering impressive results in favour of smaller businesses as part of the Investment Plan for Europe. 

The resources under EFSI are enabling EIF to deploy its existing support for SMEs at a higher and faster rate than initially anticipated and to increase its response to a very strong market demand. Initial EFSI resources under the SME Window are used to accelerate and enhance the deployment of existing EU flagship programmes - COSME and InnovFin - which EIF manages on behalf of the European Commission and to significantly increase by €2.5bn the Risk Capital Resources (RCR) mandate for equity investments, which EIB has entrusted to EIF.

Through the EIF-NPI Equity Investment Platform, a non-binding governance framework, EIF offers the possibility for National Promotional Institutions (NPIs) to match the total budget of investments under the EFSI SME Window on a 1:1 basis. In addition, through the EIF-NPI Securitisation Initiative (ENSI) - a cooperation and risk sharing platform with several NPIs - EIF aims at providing more funding to SMEs by revitalizing the SME Securitisation market while catalysing resources from the private sector. These initiatives are an opportunity for EIF and NPIs to establish a closer, more coordinated operational interaction, reflecting the spirit of EFSI aiming to achieve a much wider outreach in support of SMEs.

Under EFSI, EIF is now implementing a new set of equity financial instruments to support more vulnerable entities within the EU ecosystem, encompassing micro, small and medium enterprises, social enterprises, social sector organisations and small mid-caps, in specific EU policy areas. Read more about EFSI equity