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European Fund for Strategic Investments – up to EUR 25 million guaranteed loans for projects of Mid-Cap companies

Up to EUR 25 million loans that are guaranteed by the EFSI programme (Juncker Plan) are now available to Mid-cap companies (less than 3,000 full-time employees) through the InnovFin MidCap Growth Finance (IMGF) programme from the European Investment Bank (EIB).

The purpose of the IMGF programme is to finance future investment programmes linked to research and innovation. Essentially, the loans will be used for projects that invest in producing or developing products, processes and/or services that are innovative, and where there is a risk of technological or industrial failure as evidenced by the business plan. Typically, companies shall plan to spend at least EUR 15 million cumulatively over the next three years.

The principal benefit of this programme is that the loans are guaranteed by the European Commission as part of the EFSI programme. This means that the loans can be obtained at beneficial pricing, low interest rates and longer tenors (compared to alternative sources of finance). The EIB also offers other benefits in its management of the loan, such as offering companies flexible growth capital with no or limited dilution for the shareholders, pursuing a long-term lending strategy with company and not selling its exposures to third parties. Furthermore, financing from the EIB means a quality stamp and positive signalling effect to attract other banks and investors to your project.

The applications for this programme are submitted to the EIB, and the deadline for submissions is until 2020 or until the guarantees provided have been exhausted.

Until 2020, grant-based funding programmes for Mid-caps and large companies will have a limited availability, so this financing instrument can be an interesting alternative for enterprises in this size range looking for investment support.

Please check our news archive for an overview of the EFSI.

With our in-depth knowledge and vast experience with EU funds, state aid schemes and various funding solutions, we invite you to discuss together the development opportunities that the IMGF programme may provide for your company.

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