Investment & Fund Management

The European Investment Fund (EIF) and the Strategic Banking Corporation of Ireland (SBCI) faced a significant challenge in addressing the financing needs of Irish SMEs, particularly in the context of increasing demand for financial support amid uncertainties such as Brexit. The initial financing of EUR 100 million under the COSME programme was fully utilized by 3,500 SMEs, primarily in the agri-sector, highlighting a clear gap in available funding for small and medium-sized enterprises.

In response to this demand, the EIF and SBCI collaborated to increase their financing capacity to EUR 330 million. This additional EUR 230 million was specifically aimed at meeting the growing requests for new financing from Irish companies. The new risk-sharing product launched by SBCI, backed by the European Commission’s COSME programme, was designed to provide lower-cost, longer-term funding options for SMEs, thereby addressing market failures in access to finance.

As a result of this tailored solution, it is expected that around 10,000 companies across various sectors in Ireland will benefit from the increased financing. This initiative not only supports the immediate financial needs of SMEs but also contributes to job creation and economic growth in the region. The EIF's agreements with SBCI, guaranteed by the European Fund for Strategic Investments (EFSI), exemplify a strategic approach to enhancing the financial landscape for SMEs in Ireland, particularly during a time of economic uncertainty.