Under the Competitiveness and Innovation Framework Programme (CIP) run by the EIF, our bank can use a guarantee facility for the portfolio of loans granted to SMEs up to PLN 1.2 billion (EUR 307.5 m) in total.

The guarantee facility of the EIF can cover investment loans, mortgage loans and loans to finance contracts. Thanks to the cooperation between BNP Paribas Bank and the EIF, Polish entrepreneurs will get easier access to financing for their company development. Additionally, loans guaranteed by the EIF will be offered at more attractive terms than standard ones, among others due to a lower loan price and less strict requirements concerning down payment.

EIF guarantees are free of charge and involve no additional applications to be filled in or reports to be prepared by a company. It is also worth noting that together with the EIF guarantee, customers can use preferential investment loans offered by BNP Paribas Bank under the agreement signed with the European Investment Bank.

EIF guarantees are offered by BNP Paribas Bank since early October 2011, in 38 branches dedicated to the SMEs service and in 8 Business Centres. BNP Paribas is one of the first banks on the Polish market to distribute loans guaranteed by the EIF to the SME sector under CIP. Formally, 36 countries participate in the Programme.

'Thanks to the cooperation with the EIF, we can reach a further milestone in our offering of credit products based on the so-called intelligent public support with the European Union funds. BNP Paribas Bank already offers a loan for financing energy-saving projects, which has been prepared in cooperation with the European Bank for Reconstruction and Development (EBRD), likewise the aforesaid preferential financing of investment projects with funds from the European Investment Bank (EIB). We are also working on a Technology Loan to enable entrepreneurs to finance investments in new technologies,' says Ms Teresa Matoga, Head of the SME & Micro Customers Line in BNP Paribas Bank.

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. EIF primarily designs and develops venture capital and guarantees 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. The EIF total net commitments to venture capital and private equity funds amounted to over EUR 5.4bn at end 2010. With investments in over 300 funds, the EIF is the leading player in European venture capital due to the scale and the scope of its investments, especially in the high-tech and early-stage segments. The EIF commitment in guarantees totalled over EUR 14.7bn in close to 160 operations at end 2010, positioning it as a major European SME loan guarantees actor and a leading micro-finance guarantor.

About CIP

The Competitiveness and Innovation Framework Programme (CIP), which spans from 2007 to 2013, has been put in place to boost European productivity, innovation capacity and sustainable growth, whilst simultaneously addressing complementary environmental concerns. Within the framework of the CIP, the European Investment Fund (EIF) has been allocated EUR 1.1bn to be split between venture capital – with the High Growth and Innovative SME Facility (GIF) - and guarantees – with the SME Guarantee Facility (SMEG).

Under the SMEG, financial institutions are encouraged to enhance access to finance for SMEs. The facility offers an excellent tool to allocate additional financing volumes for those SMEs that would not otherwise have access to resources and financial engineering instruments because of the increased lending risk entailed. As such, the SMEG complements and broadens EIF’s own product offering.

The EU CIP SMEG Facility gives the EIF the opportunity to support sustainable job creation and entrepreneurship in European SMEs.

Press contacts:

EIF: David Yormesor, d.yormesor@eif.org
BNP Paribas Bank Polska SA: Magdalena Szymańska, magdalena.szymanska@bnpparibas.pl

CIP