EIF and LfA Förderbank Bayern Partner to Unlock €400 Million in Financing for Bavarian SMEs’ Innovation and Sustainability

EIF and LfA Förderbank Bayern Partner to Unlock €400 Million in Financing for Bavarian SMEs’ Innovation and Sustainability

(IN BRIEF) The European Investment Fund (EIF) has partnered with LfA Förderbank Bayern to expand a guarantee programme aimed at supporting small and medium-sized enterprises (SMEs) in Bavaria. With a €13 million counter-guarantee from the EIF, the programme will enable regional banks to provide up to €400 million in financing for SMEs. The initiative, part of the European InvestEU programme, focuses on boosting SME competitiveness, sustainability, and innovation, particularly in areas such as green transformation and digitalisation. This collaboration aims to help Bavarian businesses access better financing conditions for future growth.

(PRESS RELEASE) MUNICH/LUXEMBOURG, 17-Oct-2024 — /EuropaWire/ — The European Investment Fund (EIF) has partnered with LfA Förderbank Bayern to expand a guarantee programme designed to support small and medium-sized enterprises (SMEs) in Bavaria. Under this initiative, the EIF will provide a capped counter-guarantee of €13 million, which will allow regional banks to offer up to €400 million in financing to SMEs and small mid-caps. This collaboration, made possible through the European InvestEU programme, aims to enhance the competitiveness, sustainability, and innovation capacities of these businesses.

The EIF’s commitment is structured around three key guarantee products within the InvestEU programme. These include the Competitiveness & Growth product, which helps SMEs gain access to financing despite higher risks or insufficient collateral; the Sustainability & Green Transformation product, which encourages investment in environmentally friendly and sustainable business practices; and the Innovation & Digitalisation product, which supports companies in research and technological advancements, promoting digital transformation.

Through this initiative, SMEs in Bavaria will benefit from better financing conditions, enabling them to invest in green technologies, innovation, and digital solutions that are critical to future competitiveness. Marjut Falkstedt, Chief Executive of the EIF, emphasized the importance of this collaboration in making financing more accessible and supporting Bavarian businesses in their transition towards a sustainable and digital future.

LfA Förderbank Bayern’s Chairman, Dr. Bernhard Schwab, highlighted the importance of transformation, particularly in the areas of digitalisation and technological innovation, as key drivers for the economy in the coming years. He expressed his enthusiasm about partnering with the EIF to support the growing investment needs of Bavarian SMEs.

Background information:

The European Investment Fund (EIF) is part of the European Investment Bank (EIB) 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.

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.

LfA Förderbank Bayern, founded in 1951, is the specialist promotional bank of the Free State of Bavaria. Its mandate is to use the instruments of a bank to provide financial support for the projects of commercial companies and professions in almost all branches of industry and for other measures designed to improve Bavaria’s economic, transport, energy and environmental structure.

Media Contacts:

Donata Riedel, d.riedel@eib.org, tel.: +49 30 590047 900, mobile: +49 151 1465 9021
Website: www.eif.org – Press Office: www.eib.org/press, +352 4379 21000, press@eib.org

Markus Wöhnl, presse@lfa.de, tel.: +49 89 21 24 – 22 26, Website: www.lfa.de

SOURCE: European Investment Fund