Notice of implementation of the ETF start-up facility, the SME guarantee facility and the seed capital action under the multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2005) (Text with EEA relevance)
Date: 2002-03-01
Institutions: European Commission
Subjects: EU aid, EU financial instrument, financial institution, industrial capital, small and medium-sized enterprises

1.3.2002

EN

Official Journal of the European Communities

C 54/7

approach.

and medium-integrated

17. Emphasises that improving environmental protection is an
ongoing process. Some years ago in the steel industry, for
example, new initiatives emerged based on a product-,
production-
This
strategy of taking a holistic view of material flows gives
priority to preventing the generation of emissions in the
first place at all points in the production process. Steel
plants in Europe nowadays are designed and constructed
from the outset
impact on the
environment and the use of resources as possible. The
best available techniques are used to ensure the effective
use of invested capital. Additionally, by-products from coal
combustion and steel production are used as raw materials
for construction, again saving natural resources.

to have

little

as

18. Emphasises that the interconnected use of energy, circu-
latory system of water use, and reduction of waste in
production (or its recycling) are clear signs of the steel
resources.
treatment
sparing
industry’s
of
Nowadays, more than 40 % of
the steel production in
Europe is no longer made from ore but obtained by
recycling scrap steel. Up to 100 % scrap is melted using
the electric-arc furnace process. The use of scrap steel is
estimated to prevent the mining of 600 000 000 tonnes of
iron ore and the use of 140 000 000 tonnes of coke
worldwide.

natural

4. TRANSPORT POLICY

19. Stresses that steel and coal are safe materials. In particular,
coal can be easily and safely stored and its transport does
not entail the same environmental hazards as the transport
of oil and gas.

20. Supports the objective of moving more steel and coal
freight from road to more sustainable forms of transport
such as rail and waterways.

21. Remarks that the steel and coal industries are already one
of
the largest users of rail and waterways in the EU.
However, they continue to use road in many cases, not
simply because it is lower cost, but because adequate alter-
natives do not exist. Providing viable alternatives through
greater investment in public transport infrastructure will
encourage greater use of
Increasing the
price of road transport will however simply push up the
costs to manufacturing and therefore is not a sustainable
development policy.

those modes.

22. As a matter of fact, already EU manufacturing suffers from
higher transport costs than major competitors. According
to UNICE, logistical costs overall represent 12 % of GDP in
Europe compared with 10 % in the USA.

23. Therefore,

regrets that once again the Commission is
proposing pricing mechanisms as the means of achieving
its objective. The inadequacy of pricing as a policy
instrument for changing transport choices is clearly illus-
trated in the United Kingdom which, according to the
Commission data (1), has both the highest level of road
fuel taxes in the EU and the highest intensity of car usage.

(1) See: (cid:145)EU energy and transport in figures 2001.htm(cid:146).

Notice of implementation of the ETF start-up facility, the SME guarantee facility and the seed
capital action under the multiannual programme for enterprise and entrepreneurship, and in
particular for small and medium-sized enterprises (SMEs) (2001-2005)

(2002/C 54/04)

(Text with EEA relevance)

funds and incubators).

This notice is addressed to financial intermediaries for SMEs
(such as banks, institutions operating guarantee schemes, seed
It outlines three
and venture capital
financial
that aim to improve the financial
environment for SMEs by extending existing, and introducing
new,
instruments for the financing of SMEs. This
programme is open to the Member States of the European
Union, Norway, Iceland and Liechtenstein.

instruments

financial

particular for small and medium-sized enterprises (2001-2005),
the European Investment Fund (EIF) is operating, on behalf of
instruments of this
the European Commission, the financial
programme. On 18 December 2001 the European Commission
signed the fiduciary and management agreements with the EIF
concerning the implementation the following three facilities:

indicative budgetary appropriations

The
2001-2005 amount to EUR 323 million.

for

the period

1. THE ETF START-UP FACILITY

Under Council Decision 2000/819/EC on a multinational
programme for enterprise and entrepreneurship (1), and in

(1) OJ L 333, 29.12.2000.

The ETF start-up facility will support the establishment and
financing of SMEs in their start-up phase by investing, pari
in relevant specialised
passu with private equity investors,
venture capital
smaller
funds, funds operating regionally or funds focused on specific

funds, particularly in seed funds,

C 54/8

EN

Official Journal of the European Communities

1.3.2002

sectors or technologies, or venture capital funds financing the
exploitation of R & D results, e.g.
funds linked to research
centres and science parks, which in turn provide risk capital
for SMEs.

The ETF start-up facility will also take equity shares in business
incubators, pari passu with private equity investors.
In this
respect, the incubators shall be treated in a similar way to
venture capital funds.

2. THE SME GUARANTEE FACILITY

appropriate,

The SME guarantee facility will provide counter guarantees or,
schemes
where
operating in Member States, Norway, Iceland and Liechtenstein,
and direct guarantees in the case of any other appropriate
financial intermediary.

for guarantee

co-guarantees

In order to make a full range of guarantee products available to
SMEs,
the four following windows are available under the
facility:

(cid:151) loan guarantees

to support

enterprises with growth
potential, with up to 100 employees. Under this window,
the EIF issues partial guarantees (directly or indirectly) to
cover portfolios of loans,

(cid:151) guarantees for portfolios of micro-loans for very small
to encourage
enterprises with up to 10 employees
financial
institutions to become more involved in that
area by offering loans of a smaller amount which propor-
tionally involve higher handling costs. Additional support
to financial
intermediaries is foreseen in order to offset
partially the higher administrative costs inherent in such
activities,

(cid:151) counter or co-guarantees of eligible guarantee schemes to
cover equity investments in SMEs with fewer than 250
employees. The EIF will not provide direct guarantees to
venture capital funds,

(cid:151) guarantees to cover portfolios of loans for the financing of
IT equipment, software and training in respect of specific

to promote

and
activities
e-commerce. Priority will be given to small enterprises
with up to 50 employees.

the use of

Internet

the

3. THE SEED CAPITAL ACTION

through support

The seed capital action aims to stimulate the supply of capital
for the creation of innovative new businesses with growth and
including those in the traditional
job creation potential,
economy,
incubators or
for
similar organisations (such as multipurpose funds that include
seed capital in their global investment programme), from their
early years onwards. Beneficiaries will be selected exclusively
incubators or similar organisations in
amongst those funds,
which the EIF participates.

seed funds,

is aimed at

the long-term recruitment of
The support
investment managers to reinforce the capacity of
additional
the venture capital industry to cater for investments in seed
capital. It will be in the form of grants covering part of the
management cost linked to these labour-intensive investments.

4. SPECIFIC INFORMATION ON THE THREE FACILITIES

Detailed information on the three facilities can be obtained
from:

European Investment Fund
43, avenue J. F. Kennedy
L-2968 Luxembourg

E-mail: info@eif.org

or from the EIF’s website at: www.eif.org

The contact details of all financial intermediaries with whom
the EIF has signed a contract will be published on the EIF’s
website in order to allow SMEs to make direct contact with
these intermediaries.

Proposals from financial intermediaries will be examined by the
the
EIF on a continuous basis, within the constraints of
available Community
EIF will
budget
endeavour to achieve an overall geographic balance.

allocations. The