Investment & Fund Management

The European Investment Fund (EIF) and ?eská spo?itelna signed an agreement aimed at enhancing lending to innovative small and medium-sized enterprises (SMEs) and small Mid-caps in the Czech Republic. This initiative, part of the InnovFin program supported by the European Commission, allows ?eská spo?itelna to provide approximately CZK 2,800 million (EUR 100 million) in financing over the next two years, backed by a guarantee from the EIF under Horizon 2020.

The specific challenge faced by innovative companies in the Czech Republic was limited access to financing for research, development, and innovation activities. The InnovFin SME Guarantee was tailored to address this issue by encouraging banks to lend to SMEs in need of investment and operating capital. The EIF's guarantee mitigates the risk for financial institutions, enabling them to offer loans ranging from €25,000 to €7.5 million under favorable conditions.

As a result of this agreement, it is anticipated that more innovative SMEs will benefit from increased financing opportunities, which will contribute to the growth of the Czech economy. Previous collaborations between EIF and ?eská spo?itelna have already facilitated loans amounting to CZK 2 billion for Czech SMEs, demonstrating the effectiveness of the EIF guarantee in supporting innovative projects.