Essen (ots) - Bundesministerium für Verkehr und digitale Infrastruktur will Bestandsschutz im Inland ...
EUR 500 million for innovative companies in Germany
Frankfurt am Main (ots) -
- Innovative companies receive even better support in 2016 - Joint initiative of the EU, EIF and KfW for the benefit of innovative companies - Assumption of 50% of liability to facilitate lending - Second project implemented by KfW within the framework of the EFSI
KfW continues to offer the "Entrepreneur Loan Plus" programme for innovative companies, which has been running in a pilot phase since 1 December 2014. The KfW Entrepreneur Loan Plus for financing investment and working capital will be made possible in the future by the InnovFin SME Guarantee facility of the European Union's Horizon 2020 programme (Framework Programme for Research and Innovation) and the financing instrument of the "Juncker Plan" (EFSI). The special feature of this programme is that KfW, the European Investment Fund (EIF) and the European Fund for Strategic Investments (EFSI) together bear 50% of the onlending financial institutions' credit risk, making it easier for them to lend.
A guarantee volume of EUR 125 million is available for the Entrepreneur Loan Plus until 2017, which translates into a secured commitment volume of EUR 500 million. The target group is the same: Established, innovative SMEs and self-employed professionals receive particularly affordable financing of up to EUR 7.5 million per project for investment and working capital. Companies are considered innovative for the purposes of the programme if they meet at least one of several criteria, for example if they have registered a patent in the last 24 months.
"Germany is one of the leading EU Member States for innovation and I am pleased that it is dedicating more resources to financing innovative companies. The InnovFin SME Guarantee deal signed today with the KfW Group will open up new ways of funding innovative companies to enable them to grow and create jobs", said Carlos Moedas, European Commissioner for Research, Science and Innovation.
"Innovation is a key priority for the EIB Group and this deal demonstrates our commitment to financing innovative companies. The Investment Plan for Europe is enabling the EIB Group to boost support for SMEs and Mid-Caps in need of finance and the KfW continues to be a crucial partner for us in Germany. By providing risk financing, we can help to strengthen the role of businesses both in Germany and across the European Union", said EIB Vice-President Ambroise Fayolle.
EIF Chief Executive Pier Luigi Gilibert added: "I am pleased to be signing the InnovFin SME Guarantee agreement here in Berlin with our long-term partner KfW for the benefit of German businesses. Under previous agreements, KfW Group has supported many successful SMEs and I am convinced that together we can support many more innovative companies over the next two years."
"Innovation fuels progress and competitiveness. Financing innovation entails a certain level of intrinsic risk. This risk is now being spread between the EU, the EIF, the financing partners and KfW, making it easier and more affordable for bold entrepreneurs to implement good ideas," stated Dr Ingrid Hengster, member of KfW's Executive Board.
As of now, interested companies can submit applications to KfW. The support of the European Union allows the KfW to reduce the already favourable interest rates on its exposures further. Thus, interest rates starting at 1.00% will be offered in the best price category.
The European Fund for Strategic Investments (EFSI) aims to overcome the current investment gap in the European Union (EU) by mobilising private financing for strategic investments which the market cannot finance alone. The Entrepreneur Loan Plus is the second programme offered by KfW as part of the EFSI following the extension of the ERP Start-up Loan - StartGeld programme in September 2015.
The InnovFin SME Guarantee facility for small and medium-sized enterprises (SMEs) provides guarantees and counter-guarantees on debt financing of between EUR 25,000 and EUR 7.5 million, in order to improve access to loan finance for innovative small and medium-sized enterprises and small midcaps (up to 499 employees). The facility is provided by the European Investment Fund, and will be rolled out through financial intermediaries (banks and other financial institutions) in EU Member States and Associated Countries. Under the InnovFin SME Guarantee, financial intermediaries will be guaranteed by the EIF against a proportion of their losses incurred on the debt financing.
The InnovFin SME Guarantee is part of InnovFin - EU Finance for Innovators, the new generation of EU financial instruments and advisory services to facilitate access to finance for innovative projects. It is expected to generate investments of about EUR 50 billion in Research and Development across Europe.
The EFSI is promoting strategic investments in infrastructure projects, as well as the provision of venture capital to small enterprises. It supports the InnovFin SME Guarantee in order to boost the volume of investments. More information are available at http://ots.de/nPjm6.
More information on EU financing offers in Germany can be found at http://ots.de/gHoLf.
Details on KfW's European commitment are available under www.kfw.de/europa. Interested companies can find out more about the Entrepreneur Loan Plus at www.kfw.de/44. There is also our information centre available to answer any questions you may have (Tel.: +49 (0)8005399001, local rate when calling from Germany).
European Commission: Siobhán Millbright + 32 (0)2 29 57361 firstname.lastname@example.org
EIB/EIF David Yormesor +35 (0)2 42 66 88 346 email@example.com
KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt
Kommunikation (KOM) Sonja Höpfner
Tel. +49 (0)69 7431 4306, Fax: +49 (0)69 7431 3266,
E-Mail: Sonja.Hoepfner@kfw.de, Internet: www.kfw.de