The EIF is providing a guarantee to SME Finance to support innovation and green transition investment by small and medium-sized enterprises, small mid-caps and micro businesses based in the Baltics, Finland and other EU countries.
This agreement was made possible with the support of the InvestEU programme, which aims to mobilise over €372 billion in additional investment for EU policy priorities between 2021 and 2027.

The European Investment Fund (EIF) and Lithuania’s SME Finance have signed a guarantee agreement under the InvestEU programme to facilitate more than €40 million in new financing in the form of loans, leases and factoring for micro and small enterprises and small mid-caps in the Baltics, Finland and the Netherlands.

Backed by portfolio guarantees of up to 80% from the EIF, SME Finance will extend lending to targeted businesses to achieve new growth by investing in innovation, sustainability or digitalisation projects. SME Finance will also provide microfinancing of up to €50 000 specifically designed for very small businesses employing up to ten employees with yearly revenues that do not exceed €2 million.

“This agreement with the EIF means SME Finance will be able to offer financing to businesses on significantly better terms,” said SME Finance CEO Mindaugas Mikalajūnas. "Our flexible and digital financing solutions already cover investment projects and working capital. We now offer even better pricing, reduced collateral requirements, or even no collateral at all.”

The EIF aims to address the persistent challenges small and medium-sized enterprises face in accessing finance. For instance, a recent EU study shows that in Lithuanian banks reject 32% of loan applications from small businesses, while the EU average is 7%.

“We are fully aligned with SME Finance’s motto of empowering growth for small businesses seeking to invest in innovation, digitalisation, and sustainability,” said EIF Chief Executive Marjut Falkstedt. “These are key InvestEU priorities and in achieving them, we are pleased to support the agile online and alternative lenders helping to diversify sources of financing for SMEs in Lithuania and the Baltic region.”

Background information

About SME Finance

SME Finance is reinventing growth financing for small- and medium-sized enterprises. Established in Vilnius, Lithuania, in 2016, it has already provided more than €1.5 billion in working capital to over 3 000 growing businesses across Europe. SME Finance’s team of 100+ banking and technology professionals provide a better, faster and fairer alternative to traditional banks or venture capital equity funding, even for companies with short trading histories. Loan decisions are delivered through an artificial intelligence-driven financing platform, which provides accurate, unprejudiced lending decisions within just one hour. With offices in three Baltic countries plus Finland, the company expanded its presence into the Netherlands in April 2023.

About the EIF

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.

About the InvestEU programme

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.

Press contacts

EIF:

Kristiina Randmaa, tel.: +352 4379 72894, k.randmaa@eib.org, Follow us on Twitter@eif_eu

Website: www.eif.org — Press Office: +352 4379 21000 — press@eib.org

SME Finance:

Agnė Raščiūtė, PR Account Manager

agne@blackunicornpr.com