On July 11 the European Commission adopted two new “off-the-shelf” (i.e. “ready to use”) financial instruments, already compliant with the ESI Funds Regulation and State Aid rules, in order to increase both public and private investments in innovative SMEs and in urban development projects.

The launch of these two new instruments is in line with the Commission’s objective of increasing the take-up by Member States of revolving financial support rather than traditional grants, and to combine public and private resources.

The first instrument consists in a co-investment facility to provide funding to start-ups and SMEs. This support will enable them to develop their business models and attract additional funding through a collective investment scheme. Total investment combining public and private resources can amount to up to €15 million per SME.

The second instrument offers Urban Development Funds aimed at supporting sustainable urban projects, in public transport, energy efficiency or the regeneration of urban areas. Total investment combining public and private resources can amount to up to €20 million per project. The fund will be managed by a financial intermediary, with ESI Funds resources and a contribution of at least 30% from private capital.

The new instruments are in addition to other three instruments already existent. A risk-sharing loan (based on the sharing of risks between public and private resources), a capped-guarantee instrument, where public money acts as guarantee against default inside a bank’s loan portfolio and a renovation loan for energy efficiency and renewable energy project in the residential building sector.

For more informations:


DG-Regional Policy. Info Regio

European Investment Bank

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