The European Investment Bank provides intermediated loans to support the on-lending of its money by ordinary banks for capital investment by small and medium-sized enterprises (SMEs) and for the infrastructure projects of local authorities.
EIB funding is allocated through intermediary banks.
- To be eligible, total project costs cannot exceed €25 million.
- The EIB's contribution can finance up to 100% of the project cost; however, it cannot exceed €12.5 million.
- Loans are repaid over a period of between two and 12 years, depending on the economic life of the project.
Intermediated loans are made to local banks and other intermediaries which then "on-lend" to beneficiaries such as SMEs, businesses, local authorities, national administrations and public bodies.
All loans must further at least one of the EIB's public policy goals.
The EIB has no contractual relationship with final beneficiaries.
The following are excluded:
- Ammunition and weapons, military/police equipment or infrastructure.
- Projects resulting in limiting people's rights and freedom, or violation of human rights.
- Projects deemed unacceptable in environmental and social terms, such as projects in protected areas, critical habitats and heritage sites or without adequate compensation/mitigation.
- Ethically or morally controversial projects, such as those concerned with the sex trade, animal testing, gambling or tobacco.
- Activities prohibited by national legislation, where such legislation exists.
Under this scheme, EIB intermediated loans are available via the local banking system to SMEs and public bodies based in the European Union. To qualify as an SME, a company must be an independent SME with fewer than 250 employees prior to investment, based in one of the 28 EU Member States.
Enterprises from most sectors are eligible to apply.
May be used for EU match funding purposes.
All intermediated loans must further at least one of the following public policy goals:
- Increase in growth and employment potential – including SME and Mid-Cap support.
- Economic and social cohesion by addressing economic and social imbalances, promoting the knowledge economy/skills and innovation and linking regional and national transport infrastructure.
- Environmental sustainability - including supporting competitive and secure energy supply.
- Action for climate-resilient growth.
For projects up to about £20 million (€25 million) applicants should contact an intermediary bank operating within their country using the intermediaries listing on the EIB website.