On 28 January 2021, the European Commission decided to further prolong and extend the scope of the State aid Temporary Framework adopted on 13 October 2020, to support the economy in the context of the coronavirus outbreak, for additional six months i.e. until 31 December 2021 (included).

In this context, EIF is providing the Financial Intermediaries which had already elected to extend the COVID-19 Support Period until 30 June 2021 with the possibility of extending it further until 31 December 2021 (included). The details of such extension will be communicated by the EIF to the Financial Intermediaries.

Update as at 1 November 2020:

The application period for COSME LGF has closed. We are updating the list of selected financial intermediaries on an ongoing basis.

Update in relation to COSME LGF (as at 29 May 2020)

The EIF has received a tremendous response from financial intermediaries who applied under COSME Loan Guarantee Facility. The aggregate amount of requests substantially exceeds the budgetary envelope available under this programme. Any new applications can only be considered should additional budgetary means become available, in which case EIF will publish a notice on this website. Meanwhile, we are working on further initiatives to support SME financing.

The EIF’s response measures to the COVID-19 pandemic (as at 06 April 2020)

The EIF and EC are launching specific COVID-19 support under the COSME Loan Guarantee Facility (COSME LGF), which is supported by the European Fund for Strategic Investments (EFSI).

Under this scheme the EIF will be able to provide enhanced terms and conditions for guarantees and counter-guarantees to incentivize financial intermediaries to provide working capital financing to European SMEs hit by the economic impact of the coronavirus pandemic. These guarantees are open to existing financial intermediaries (i.e. those already operating under COSME LGF) and to new applicants.

Existing intermediaries shall be able to benefit from improved guarantee terms without any application process by executing an amendment to their agreements in line with the specific Notice to Financial Intermediaries.

The COVID-19 support includes additional guarantee envelope dedicated to support working capital financing. This COVID-19 guarantee envelope is available to the financial intermediaries established in EU Member States, by submitting the application to the EIF.

Interested parties who wish to submit an applications are invited to consult the full details in the call documents lower below under NEW COVID-19 SUPPORT.

Deadline for application has been set to 30 June 2020

For a quick overview about the COVID-19 support measures click here

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The COSME Loan Guarantee Facility (LGF) is a window of the Single EU Debt Financial Instrument which supports European enterprises' growth and research and innovation (R&I).

LGF is part of COSME (Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises), an initiative launched by the European Commission and managed by EIF.

How does COSME LGF work?

Through COSME LGF, EIF offers guarantees and counter-guarantees, including securitisation of SME debt finance portfolios, to selected financial intermediaries (e.g. guarantee institutions, banks, leasing companies, etc.) to help them to provide more loans and leases to SMEs.

By sharing the risk, COSME guarantees allow the financial intermediaries to expand the range of SMEs they can finance, facilitating access to debt finance for many SMEs who might be having difficulties in accessing the traditional banking system.

Furthermore, the COSME Digitalisation Pilot is a new initiative launched under COSME LGF in October 2019 with a view to supporting the digital transformation of SMEs in the Participating Countries. The Pilot enables Financial Intermediaries to offer broader and more comprehensive financing to SMEs in the field of digitalisation.

LGF is a successor to the SME Guarantee Facility (SMEG), successfully implemented by EIF under the Competitiveness and Innovation Framework Programme (CIP) in the period 2007-2013.

**Who is eligible* to become EIF’s financial intermediary under COSME LGF?**

Eligible applicants are:

Financial or credit institutions and loan (debt) funds duly authorised to carry out lending or leasing activities to SMEs according to applicable legislation, established and operating in one or more of the EU Member States and COSME Associated Countries ;
Guarantee institutions, credit or financial institutions duly authorised to issue guarantees to SMEs according to applicable legislation, established and operating in one or more of the EU Member States and COSME Associated Countries.

(*) For detailed and complete eligibility criteria please see the application documents below.

Which type of companies can benefit from COSME LGF?

SMEs, established and operating in one or more EU Member States and COSME Associated Countries.
Supported SMEs should not be carrying out activities breaching ethical principles or focus on one or more EIF restricted sectors.

How to apply to COSME LGF

For financial institutions:
If you are eligible, you can apply by downloading all the application documents published here below by 31 October 2020. EIF will select intermediaries after a due diligence process.

Note: Following the update of 6 April 2020, the dedicated guarantee envelope to support working capital financing in EU 27 have been introduced as part of COVID-19 measures with new deadline for applications set to 30 June 2020. The COSME LGF remains open for applications from financial intermediaries in EU and Participating Countries outside of the COVID-19 guarantee envelope within its original deadline of 31 October 2020.

For SMEs:
Are you looking for debt finance? Download here the list of financial intermediaries and sub-intermediaries currently operating under the COSME - Loan Guarantee Facility (LGF), thanks to the support of the European Union.
For information about finance available under further EU initiatives, please visit http://europa.eu/youreurope/business/funding-grants/access-to-finance/

COSME - Loan Guarantee Facility (LGF)

Update in relation to COSME LGF COVID-19 Support Period (as at 30 June 2021):

Update as at 1 November 2020:

Update in relation to COSME LGF (as at 29 May 2020)

The EIF’s response measures to the COVID-19 pandemic (as at 06 April 2020)

How does COSME LGF work?

**Who is eligible* to become EIF’s financial intermediary under COSME LGF?**

Which type of companies can benefit from COSME LGF?

How to apply to COSME LGF

COVID-19 SUPPORT

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