In 2015, the Banque Internationale à Luxembourg (BIL) concluded an InnovFin agreement with the European Investment Fund (EIF), for a total guarantee amount of €30 million, covering a loans portfolio of €60 million to SMEs. 

The InnovFin SME guarantee facility is set up as part of the “InnovFin Finance for Innovators” initiative, developed under the Horizon 2020 framework programme. It provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5 million to improve access to loan financing for innovative SMEs.

The initial guarantee agreement has been increased by €10 million to enable the BIL to increase its lending to the innovative business sector in Luxembourg by twice the amount. This increase means that the EIF guarantee will cover a loans portfolio to more than 100 SMEs for a total amount of up to €80 million.

The extension of the InnovFin agreement between the EIF and the BIL will improve access to fundings for innovative Luxembourg SMEs. The operation is supported by the EFSI mechanism, which is at the heart of the Investment Plan for Europe – the Juncker Plan.