The European Investment Bank (EIB) is the long-term lending bank of the European Union. Its four main services are loans to the public and private sector (including SME finance through banks), technical assistance for financing facilities, credit guarantees and venture capital finance.
Ireland has benefitted significantly from EIB financing. Between 2000 and 2008, Ireland received some €3.8 billion in loans from the EIB, €845 million of which was provided to banks for lending to SMEs.
Since 2009, the EIB has provided €410 million to commercial banks for SME financing as investment finance, not working capital. Further requests for funding have also been made.
Financial institutions that partner with the EIB act as intermediary financing institutions and pass the funds on to customers, usually SMEs or local authorities.
To qualify as an SME for EIB funding purposes, a company must have fewer than 250 employees, an annual turnover not exceeding €50 million, and an annual balance sheet total of up to €43 million.
The conditions of financing (interest rate, grace period, loan period, etc.) and lending decisions are made by the intermediary bank.
To find out more about EIB financing for SMEs, visit the EIB website here.