Investment & Fund Management

The European Investment Fund (EIF) and ABN AMRO signed a significant guarantee agreement in the Netherlands aimed at supporting small and medium-sized enterprises (SMEs) through the Risk Sharing Instrument (RSI). This initiative addresses the critical issue of access to finance for innovative and high-growth companies, which often struggle to secure funding for research, development, and innovation projects.

Under this agreement, ABN AMRO is empowered to offer up to EUR 120 million in new loans over the next two years, specifically targeting SMEs and small mid-caps seeking financial support for investments and working capital. The loans, ranging from €25,000 to €7.5 million, are backed by a 50% guarantee from the EIF, which mitigates the risk for the bank and encourages lending to these businesses.

The implementation of the RSI is expected to significantly enhance the financing landscape for innovative SMEs in the Netherlands. With nearly 50% of Dutch SMEs identified as innovative, the partnership between EIF and ABN AMRO is poised to facilitate easier access to essential funding, thereby fostering entrepreneurship and growth within the sector. This initiative not only supports individual businesses but also contributes to broader economic objectives by promoting innovation and job creation in the region.