Investment & Fund Management
in Germany. The specific challenge faced by SMEs was
Full Credential Description
The EIF and LfA Förderbank Bayern (LfA) entered into a COSME loan guarantee agreement and a joint equity initiative extension agreement aimed at supporting Small and Medium-sized Enterprises (SMEs) in Germany. The specific challenge faced by SMEs was limited access to financing due to insufficient collateral, particularly affecting start-ups. The tailored solution involved a risk-sharing mechanism that allowed on-lending banks to significantly increase loan volumes to these SMEs, generating a new portfolio of loans worth up to EUR 150 million over the next three years. This initiative is expected to benefit over 1,200 companies.
Additionally, the EIF extended the LfA-EIF equity facility from EUR 100 million to EUR 150 million. This fund-of-funds invests in venture capital funds and co-invests with selected business angels in Bavaria, covering various technology sectors including ICT, life sciences, and energy-related technologies. The collaboration aims to stimulate growth and innovation in the region, providing essential financial support to SMEs and start-ups in technology areas.