Investment & Fund Management

LfA Förderbank Bayern faced challenges in expanding its support for small and medium-sized enterprises (SMEs) in Bavaria, particularly in the areas of competitiveness, sustainability, innovation, and digitalization. To address these issues, the European Investment Fund (EIF) provided a capped counter-guarantee of €13 million through the European InvestEU program. This financial backing is designed to enhance the ability of regional banks to offer financing to SMEs, with the potential to support up to €400 million in SME financing.

The EIF's commitment specifically targets SMEs and small mid-caps, facilitating access to finance for riskier businesses that may lack sufficient collateral. The program utilizes three key EIF guarantee products: the Competitiveness & Growth product, the Sustainability & Green Transformation product, and the Innovation & Digitalisation product. These tailored solutions aim to foster environmentally friendly investments, support the green transformation of the economy, and promote innovation and the adoption of new digital technologies among SMEs.

As a result of this collaboration, LfA Förderbank Bayern is positioned to provide more favorable financing conditions for SMEs, enabling them to invest in sustainability and innovation. This initiative not only aims to enhance the competitiveness of Bavarian SMEs but also supports their transition towards a more digital future, addressing the significant investment needs associated with technological advancement.