Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and Bank Leumi, along with LeumiTech, signed an agreement aimed at enhancing lending to innovative small and medium-sized enterprises (SMEs) and small mid-caps in Israel. This initiative, part of the InnovFin program supported by the European Commission, allows Bank Leumi to provide up to USD 100 million (EUR 93 million) in financing to innovative companies in Israel, backed by a guarantee from the EIF under Horizon 2020.
The specific challenge faced by innovative companies in Israel 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 capital. The program provides guarantees on debt financing ranging from EUR 25,000 to EUR 7.5 million, thereby improving access to debt finance for these businesses.
As a result of this agreement, Bank Leumi is positioned to offer more favorable financing terms to the Israeli high-tech sector, which is crucial for fostering innovation. The CEO of Bank Leumi expressed confidence that this partnership would significantly increase funding for the high-tech industry, allowing for better financing options tailored to the unique needs of innovative firms. This collaboration not only enhances the financial landscape for Israeli startups but also aligns with the broader EU objectives of supporting innovation and economic growth.