Central EU Financial
Instruments
How do they function and how can Turkish
companies benefit?
Ankara, 14 April 2015
Directorate-General for Internal Market, Industry, Entrepreneurship
and SMEs (DG GROW)
Unit F3: SME Access to Finance
Astrid Bartels (Policy Officer): [email protected]
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What are EU financial instruments?
 Loans, guarantees or equity investments to
support policy objectives (e.g. support of SMEs,
innovation & research, women entrepreneurs,
microfinance, etc.)
 Designed to address market gaps or suboptimal
market conditions
 Each instrument comes with specific eligibility
criteria (e.g. target size of company, area of
activity – linked to policy objectives)
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How does the distribution work?
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Research,
Development,
Innovation
Jobs, Growth and
Social Cohesion
EU Financial Instruments (2014-2020)
COSME (€1.4bn) - SMEs
•
•
Guarantees with a particular
focus on financing of higher risk
SMEs up to €150.000 (Call
published)
Risk capital predominantly into
SMEs at the growth and
expansion stage (Call published)
Social Change
& Innovation (€193m)
•
Microfinance to microenterprises (Call expected Q2
2015)
•
Investments of up to €500.000
to social enterprises (Call later
in 2015)
Horizon 2020 (InnovFin) (€2.7bn)
•
Guarantees to RDI-driven/ innovative SMEs & small midcaps between
€25k and €7.5m and ambitious RDI projects (Call published)
•
Risk capital at the early and start-up phase (Call expected 2015)
•
Financing of large innovation projects (application directly to EIB)
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How can financial intermediaries apply?
 COSME Debt facility (to provide guarantees and counterguarantees to cover loans for SMEs with a particular focus
on financing of higher risk SMEs up to €150.000)
 http://www.eif.org/what_we_do/guarantees/single_eu_debt_instrume
nt/cosme-loan-facility-growth/index.htm
 Horizon 2020: InnovFin SME Guarantee Facility (to
provide financing to RDI-driven SMEs and small midcaps)
 http://www.eif.org/what_we_do/guarantees/single_eu_debt_instrume
nt/innovfin-guarantee-facility/index.htm
 COSME Equity facility (for venture capital funds that
invest into SMEs at the growth and expansion-stage)
 http://www.eif.org/what_we_do/equity/single_eu_equity_instrument/c
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osme_efg/index.htm
How do companies find sources of finance?
Financing example
 Bonnyfood, company set up in 2008
in Istanbul
 When Hamit and Didem approached
banks for financing, they
encountered difficulties given the
type of market and size of their
business.
 The idea of selling a new type of
product from an e-commerce
Intermediary: Finansbank
platform was a concept many banks
Loan of € 250,000 to start
could not understand but Finansbank
and expand the business
was different and provided the
Financed by COSME
predecessor programme
financing backed by an EU
(Competitiveness and
guarantee.
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Innovation Programme - CIP)
Thank you for your attention!
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