“SMEs- The new tools/opportunities for access to finance introduced by Horizon 2020” by Jean-David Malo, Head of Unit SMEs, Financial Instruments and State Aid, Directorate General for Research and Innovation, EC.
“Access to risk finance”
Part of the horizon 2020 budget, that is 3,69% (2.7 billion euros) will be provided though grant funding but in the form of risk sharing for loans and guarantees and by providing risk finance (equity).
Goal: stimulate more investment in research and innovation To attract additional finance and multiply horizon 2020 budget resources for SMEs
Because of enduring difficulties in SMEs in accessing startup/Grant finance and because of the need to build an integrated European VC market
They cover a broad range of interventions such as :
- Guarantees to mutual guarantee societies and banks lending to companies incl SMEs
- Equity participation for early and growth stage investments
This funding will be typically delivered via financial intermediaries (banks funds etc) but also directly Operated by the EIB group but may also be operated by other financial institutions
Debt finance can be achieved through the following schemes:
- Loans service for R&I (called “RSFFII”) Loans and guarantees for investments in research and innovation; targeted at midcaps and larger companies, research institutes and Stand alone projects Loan amounts over 7,5 million
- Sme and small midcaps R&I loans service Loan guarantee facility between 25,000 to 7.5 million
- SME initiative : Joint guarantee instrument an securitization for loans to innovative SMEs and small midcaps
Equity finance (next year):
-Early stage finance for innovative enterprises
-Pilot facility for tech transfer , creation of spin offs
More info on the initiatives can be also found here.
For the full presentation of Horizon 2020’s Financial Instruments, check this link.