European development loans for SMEs in Germany and Europe
On the 9th of December 2021, the European Investment Bank
(EIB) and Deutsche Leasing signed an agreement for development loans over 75 million Euros. The recent cooperation with the EIB also includes significant support for financing and leasing solutions for green assets. Under this program, Deutsche Leasing focuses on financing machinery and technologies that lead to energy savings, low-carbon mobility and other environmental solutions, supporting the green transformation of SMEs and MidCaps.
Deutsche Leasing uses this sum to finance companies in Germany and Europe. Small and medium-sized enterprises (SMEs) – up to 250 employees – as well as mid-cap companies – up to 3.000 employees – can profit from this co-operation between Deutsche Leasing and EIB in Germany and Europe. Since EIB has the best credit ranking possible (AAA), it can raise money from investors on the capital markets for favorable conditions and pass on these benefits to SMEs and midcap companies.
As the lending arm of the European Union EIB promotes SMEs who form the backbone of the German economy as well as Europe. Throughout Europe the EIB-Group, which consists of the EU-Bank and European Investment Fond (EIF), financed projects for over 25,5 billion Euro last year – a record. The reason being was that EIB widened its scope for promoting companies. Because of the large number of SMEs and Midcaps in Europe, the EIB-Group co-operates with intermediaries, such as the Deutsche Leasing AG.
Development loans by EIB can be used to finance small or larger projects up to a total cost of 25 million Euro. However, the loan from EIB must not exceed 12.5 million Euro. Most economic sectors and activities are eligible for a loan. The following are excluded: Exceptions are:
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the production of weapons and ammunition, explosives, equipment or infrastructure specifically for military purposes
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equipment or infrastructure, which is intended to restrict individual rights and liberties of people or has a negative impact on the environment, which is not softened and / or compensated for
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activities, which are ethically or morally controversial, such as sex-trade and related infrastructure, services and media, animal testing, research to clone humans
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activities, which are illegal by national law, such as genetically changed organisms, abortion clinics, nuclear energy, etc.
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gambling, tobacco industry, real estate speculation, simple finance transactions and consumer loans.
Background information
EIB / EIF
The European Investment Bank (http://www.eib.org/) is the lending arm of the European Union. As a "policy-driven bank" whose shareholders are the member states of the EU, the EIB uses its financing operations to bring about European integration and social cohesion. The EIB Group has two parts: the European Investment Bank and the European Investment Fund (EIF). The EIF specialises in risk finance for small businesses and mid-caps in order to support innovation in Europe.
