European Investment Bank and Banco Populare sign agreement to help local authority support for SMEs
16th June 2009
The European Investment Bank and Banco Popolare signed yesterday an agreement for the allocation of a total of EUR 300m divided into two credit lines: EUR 200m to finance SMEs’ investment projects and initiatives in the industrial, services and tourism sectors; and EUR 100m to support public entities and utilities.
Under this partnership, EIB funds earmarked for SMEs will be distributed through the branches of the Banco Popolare Group’s network to enterprises with fewer than 250 employees via medium-term loans under the following terms: up to EUR 12.5m per project, maturity of up to 12 years, and fixed or floating interest rate.
This operation will help to provide new funding for enterprises, which will be able to access affordable capital with which to undertake business development programmes. Thanks to this initiative, Banco Popolare will be able to access additional flexible resources easily and quickly in order to offer concrete support to SMEs against the backdrop of the current financial crisis.
The loans granted under the EUR 100m credit line for public entities and utilities are intended to support small and medium-scale infrastructure projects in the energy, environmental, education and health sectors. Projects costing less than EUR 25m are eligible for financing, with a maximum of 50% of each project’s cost covered (EUR 12.5m). The term of the financing is up to 20 years.
The agreement signed yesterday underpins the EIB’s financial commitment to businesses under the “Loan for SMEs” programme through which the EIB has deployed EUR 30bn for European SMEs in the form of loans to be allocated via commercial banks.
European Enterprise Week
6th May 2009
European SME week (6th-14th May) focused on entrepreneurs
The first European Small and Medium Sized Enterprise (SME) week is focused on providing support to entrepreneurs in difficult times. More than 1000 events across 35 countries will focus on raising awareness of entrepreneurship and increasing awareness of available support across the European Union.
Key EU policy measures since 2004 have included:
- Anchoring "Think Small First" principle in the EU
- Cutting administrative burden : SMEs will benefit from simplified measures and administrative costs savings with the Commission’s objective to reduce administrative burdens on businesses by 25% in 2012 and to engage also Member States.
- Revised state aids rules make it easier for SMEs to benefit from public funding for training, research and development, environmental protection and other types of aid.
- A new statute for a European Private Company will allow SMEs to start up and operate according to the same company law provisions throughout Europe.
- Encouraging new entrepreneurs and inspiring those planning to set up a new business, the Erasmus for Young Entrepreneurs European exchange programme was launched at the beginning of 2009. The programme helps them to acquire relevant skills for managing an SME by spending time working in another EU country with an experienced entrepreneur.