Norway gets EU backing to boost SMEs with NOK 6.4 billion

• EIF signs two deals with state-owned business promoter Innovation Norway to support around 1 600 SMEs.
• EIF guarantees, backed by the InvestEU programme, will enable Innovation Norway to deliver over NOK 3.5 billion in loans for green risks, innovation and high growth.
• Innovation Norway’s new programme to improve access to finance for innovative and fast-growing Norwegian SMEs launched today.

The European Investment Fund (EIF) and Innovation Norway reached two agreements to enhance financing for small and medium-sized enterprises (SMEs) in Norway. The partnership will enable Innovation Norway, which supports business expansion and exports, to increase its lending volume, offering better terms and conditions to companies involved in the green transition, innovation and growth projects.

The agreements also include a counter-guarantee that will improve access to finance for innovative and fast-growing Norwegian SMEs. With the support of the EIF, Innovation Norway aims to channel up to NOK 2.9 billion in credits and lending from participating banks through the Guarantee for growth programme. This initiative targets the specific needs of innovative and fast-growing SMEs, ensuring they have the necessary financial resources to expand and thrive.

Today's launch marks a step forward in supporting Norway's entrepreneurial ecosystem. Banks interested in participating are invited to join, as the programme officially opens on 6 June 2024. This collaboration underscores the commitment of the EIF and Innovation Norway to fostering a robust and dynamic SME sector in Norway, driving economic growth and promoting sustainable development.

The EIF commitment is backed by the InvestEU programme, which mobilises investment for European Union policy priorities such as the green and digital transition as well as social investment and skills.

“Through these new agreements backed by the InvestEU programme, we are glad to support Innovation Norway in significantly expanding its lending capabilities,” said EIF Chief Executive Marjut Falkstedt. “This collaboration will provide essential financing to SMEs, fostering the green transition, innovation and sustainable growth in Norway.” 

Innovation Norway said the accords are landmark steps. 

“This partnership with the EIF under the InvestEU programme is a significant milestone,” said Håkon Haugli, CEO of Innovation Norway. “With these guarantees, we can now offer even more favourable terms to SMEs, enabling them to pursue ambitious projects in innovation and green transition. We are excited to see the positive impact this funding will have on the Norwegian business landscape, especially for fast-growing and innovative companies that drive our economy forward.”

The signature ceremony took place on 6 June in Oslo.

“The InvestEU programme is an excellent example of EU-Norway cooperation, and how our joint efforts facilitate the green and digital transitions through enabling growth and innovation,” said EU ambassador to Norway Nicolas de La Grandville. “Norway’s participation in the InvestEU programme is made possible by the EEA Agreement, which remains instrumental in promoting economic prosperity. We stand by our common commitment to reach a more resilient economy that works for all and a sustainable future.”

Background information

The EIF is part of the EIB Group. It supports Europe’s SMEs by improving their access to finance through a wide range of selected financial intermediaries. The EIF designs, promotes and implements equity and debt financing instruments targeting SMEs. In this role, the EIF fosters EU objectives in support of entrepreneurship, growth, innovation, research and development, the green and digital transitions and employment.

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Innovation Norway is the Norwegian government's main instrument for innovation and development of Norwegian enterprises and industry. It supports companies in developing their competitiveness and ability to innovate to create value for Norway by offering advisory services, networks and financial support.

Press contacts:

EIB Group: Thomas Eriksson | t.eriksson@ext.eib.org  
Website: www.eib.org/press - Press Office: press@eib.org  

Innovation Norway: Kjetil Svorkmo Bergmann | +47 90 82 09 18 | kjetil.svorkmo.bergmann@innovasjonnorge.no

European Union Delegation to Norway: Johanne Stavdal Engh | + 47 93 85 42 65 | johanne-stavdal.engh@eeas.europa.eu