Report to the Council and the European Parliament on the financial instruments of the multiannual programme for enterprise and entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) (2001-2006) (pursuant to Article 5(1) of Council Decision 2000/819/EC of 20.12.2000, as amended by Decision 593/2004/EC of the European Parliament and of the Council of 21.7.2004)
Date: 2007-05-04
Institutions: European Commission
Subjects: EU programme, activity report, aid to undertakings, entrepreneurship, financial aid, financial management, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 4.5.2007 
COM(2007) 235 final 

REPORT TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

on the financial instruments of the multiannual programme for enterprise and 
entrepreneurship, and in particular for small and medium-sized enterprises (SMEs) 
(2001-2006) 

(pursuant to Article 5(1) of Council Decision 2000/819/EC of 20.12.2000, as amended by 
Decision 593/2004/EC of the European Parliament and of the Council of 21.7.2004) 

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TABLE OF CONTENTS 

1. 

2. 

2.1. 

2.2. 

3. 

3.1. 

3.2. 

3.3. 

3.4. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

5. 

5.1. 

5.2. 

5.3. 

6. 

General introduction..................................................................................................... 3 

Overview ...................................................................................................................... 3 

Implementation ............................................................................................................ 3 

Take-up ........................................................................................................................ 4 

SME Guarantee Facility............................................................................................... 4 

Description of the Facility............................................................................................ 4 

Budgetary situation ...................................................................................................... 5 

Financial Intermediaries............................................................................................... 9 

Beneficiary SMEs and employment............................................................................. 9 

ETF Start-up Facility.................................................................................................. 10 

Description of the Facility.......................................................................................... 10 

Budgetary situation .................................................................................................... 11 

Financial Intermediaries............................................................................................. 14 

Beneficiary SMEs ...................................................................................................... 14 

Seed Capital Action.................................................................................................... 14 

Description of the Facility.......................................................................................... 14 

Budgetary situation .................................................................................................... 14 

Financial Intermediaries............................................................................................. 15 

Conclusions ................................................................................................................ 16 

Annex 1: Geographical distribution - all financial instruments ............................................... 19 

Annex 2: SME Guarantee Facility– Leverage (gearing).......................................................... 20 

Annex 3: SME Guarantee Facility– Financial intermediaries ................................................. 21 

Annex 4: SME Guarantee Facility – Beneficiary SMEs.......................................................... 42 

Annex 5: SME Guarantee Facility - Analysis of Defaulted Loans,  
situation as at 30 june 2005 ...................................................................................................... 48 

Annex 6: ETF Start-up ............................................................................................................. 50 

Annex 7: Seed Capital Action.................................................................................................. 53 

Annex 8: Financial Statements................................................................................................. 54 

Annex 9: Joint European Venture (JEV) programme .............................................................. 55 

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1. 

GENERAL INTRODUCTION 

This  is  the  third  annual  report  on  the  progress  achieved  in  the  implementation  of  financial 
instruments under MAP, the multiannual programme for enterprise and entrepreneurship, and 
in particular for small and medium-sized enterprises-SMEs. 

It  is  drawn  up  in  accordance  with  Article  5  (1)  of  the  Council  Decision  2000/819/EC 
(OJ L 333, 29.12.2000, p.84) adopted on 20.12.2000, as modified by decision 593/2004/EC of 
the European Parliament and of the Council of 21 July 2004 (OJ L 268, 16.8.2004, p. 4).  

MAP  was  initially  designed  to  cover  the  period  2001-2005.  However,  in  order  to  ensure 
continuity  of  action  until  the  start  of  the  successor  programme  under  the  new  Financial 
Perspectives, MAP was extended in December 2005 by one year, until the end of 2006. 

The  goal  of  the  MAP  financial  instruments  is  to  improve  the  financial  environment  for 
business, especially SMEs. MAP builds on the results achieved under the 1998 Growth and 
Employment Initiative. 

This report covers three financial instruments under MAP, i.e. SME Guarantee Facility, ETF 
Start-up Facility and the Seed Capital Action. It provides an overview of progress achieved 
as  at  31.12.2005  and  is  broken  down  into  one  chapter  for  each  of  the  financial  instruments 
(chapters 3, 4 and 5). 

All the financial instruments are managed by the European Investment Fund (EIF) and aim to 
address recognised market failures in order to improve SMEs’ access to finance. 

The  approval  of  projects  using  budgetary  funds  available  under  MAP  effectively  started  on 
25.3.2002.  Projects  submitted  prior  to  that  date  were  approved  under  Growth  and 
Employment.  

2. 

OVERVIEW 

2.1. 

Implementation 

On 10.12.2001, the Commission adopted its Decision C(2001) 3973 on the implementation of 
the  financial  instruments  of  MAP.  Following  this,  on  18.12.2001,  the  Commission  signed 
with the EIF the Fiduciary and Management Agreements for the ETF Start-up Facility, SME 
Guarantee Facility and Seed Capital Action. 

These agreements were revised on 22.12.2005 in order to take into account the extension of 
MAP. 

An indicative budget of EUR 317 million for the period 2001-2005 was initially proposed for 
the MAP financial instruments. Taking into account the extension of MAP by one year, the 
increases decided by the budgetary authorities, the transfers made from other budget lines, the 
indicative MAP budget for the period 2001-2006 amounts to EUR 512 million. 

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In addition to the EU Member States, Bulgaria, Romania and Turkey are also eligible under 
the  MAP.  Furthermore,  the  agreement  on  the  European  Economic  Area  (EEA)  concluded 
with  the  EFTA/EEA  countries  provides  for  the  possibility  of  participation  by  the  EEA 
countries in the MAP. 

2.2. 

Take-up 

In  accordance  with  the  Fiduciary  and  Management  Agreements  between  the  EIF  and  the 
Commission,  the  EIF  shall  endeavour  to  achieve  a  balanced  geographic  distribution  of  the 
three  MAP  financial  instruments,  taking  into  account,  in  no  specific  order  of  priority,  the 
following 4 criteria: 

•  the  aim  to  achieve  a  balanced  global  country  coverage  for  the  three  financial 

instruments taken together; 

•  the  aim  to  allow  each  Member  State  to  benefit  from  at  least  one  financial 

instrument; 

•  the minimum size necessary for a specific operation to be viable; 

•  the characteristics of the different markets.  

The  different  needs,  market  conditions  and  macro-economic  circumstances  in  the  various 
participating  countries  have  an  impact  on  the  absorption  capacity  and  the  take-up  of  the 
various  financial  instruments.  Sufficient  flexibility  is  therefore  foreseen  to  allow  for  the 
necessary adjustments, for example shifts between the different financial instruments. Based 
on the experience gained in the implementation of the instruments, the Commission considers 
that  appropriate  geographical  distribution  should  be  achieved  across  the  various  financial 
instruments considered globally, rather than individually, for each of them.  

The table in Annex 1 shows the geographical coverage of the MAP, based on the approvals 
made by the Commission as at 31.12.2005, all three financial instruments taken together. 

3. 

SME GUARANTEE FACILITY 

3.1. 

Description of the Facility 

The  objective  of  this  Facility  is  to  promote  entrepreneurship,  enhance  growth  and 
competitiveness,  improve  the  financial  environment  and  give  business  easier  access  to 
Community  support  services  and  programmes  by  supporting  SMEs  with  growth  and 
employment creation potential through  increased  availability  of debt financing. The Facility 
provides support for higher volumes of guarantees for the existing guarantee products of the 
Financial Intermediaries (FIs), access to financing for a larger number of small companies for 
a wider variety of investments and guarantees for riskier loans. It also supports the creation 

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and development of new guarantee schemes. The Facility covers part of the losses incurred 
under the guarantees up to a pre-determined amount (the “cap"1.) 

The  Facility  is  managed  by  the  EIF  on  behalf  of  the  European  Union.  The  EIF  identifies, 
evaluates and selects potential FIs for the Facility in accordance with the relevant Guarantee 
Policy. 

The  SME  Guarantee  Facility  applies  to  companies  with  up  to  100  employees.  The  FIs  may 
have stricter SME eligibility criteria depending on their specific guarantee or loan products. In 
any case, the origination and risk assessment as well as monitoring and recovery actions with 
regard  to  the  final  SME  beneficiaries  are  the  full  responsibility  of  the  selected  Financial 
Intermediaries. 

The MAP extends the coverage of  the Facility to new products and countries. Compared to 
the  Growth  and  Employment  initiative,  three  new  sub-windows  were  added  to  the  Facility 
under  MAP  in  order  to  expand  the  range  of  available  guarantee  instruments:  micro-loans, 
equity  investments  and  loans  to  cover  IT  equipment,  software  and  training  in  the  area  of 
internet and e-commerce. 

The following windows are available: 

•  Loan  Guarantees:  support  enterprises  with  growth  potential  and  up  to  100 
employees.  Under  this  window,  the  EIF  issues  partial  guarantees  or  counter-
guarantees to cover portfolios of loans or guarantees.  

•  Micro-credit Guarantees: support micro-loans for very small enterprises with up 
to  10  employees.  Under  this  window,  the  EIF  issues  partial  guarantees  to  cover 
portfolios of micro-loans. 

•  Equity  Guarantees:  counter-  or  co-guarantees  to  guarantee  schemes  to  cover 

equity investments in SMEs (no direct guarantees to VC funds). 

•  ICT  Guarantees:  cover  portfolios  of  loans  for  the  financing  of  IT  equipment, 
software and training to promote the use of the internet and e-commerce. Priority 
is given to small enterprises with up to 50 employees.  

3.2. 

Budgetary situation 

3.2.1.  Overview  

As  at  31.12.2005,  the  budgetary  resources  committed  under  SME  Guarantee  Facility 
amounted  to  EUR  267.50  million,  which  represents  64.3%  of  the  total  MAP  budget 
committed until the end of 2005. 

In  addition,  according  to  the  Council  Decision  2000/819/EC,  Annex  II,  point  II.G,  “interest 
earned on the trust account shall be added to the resources of the Facility”. This total budget 

1 

The  cap  is  a  pre-set  amount  in  EUR  (and  percentage)  and  corresponds  to  EIF’s  maximum  liability 
towards  an  FI  to  pay  its  share  of  the  losses  regarding  the  FI's  specific  portfolio.  The  cap  is  based  on 
expected losses. The financial risk to the Community’s budget is limited first by the cap and secondly 
by the guarantee rate approved by the Commission for a given intermediary (typically 50%). 

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shall then cover the full cost of the Facility, including guarantee losses and any other eligible 
costs or expenses. The table below shows the breakdown of budget, interest and other income 
and expenditure. 

Table 1 - Budgetary data as of 31.12.2005  

Resources 

Budget appropriations 

Interest & other income 

Total resources (1) 

Utilisation 

(EUR million) 

267.01 

0.49 

267.50 

EIF  commitments  to  Financial  Intermediaries  (basis:  approvals  by 
Commission services) 

226.00 

Reserve for EIF management fees and other eligible expenses 

Total utilisation (2) 

Available budget (1) – (2)  

3.2.2.  Commitments 

24.53 

250.539 

16.96 

Figure  1  shows  the  evolution  of  the  EIF  guarantee  commitments  (EUR  226.0  million  at 
31.12.2005)  compared to the available budget until the end of 2005 of EUR 242.96 million 
(EUR 267.50 million minus EUR 24.53 million for EIF cumulative fees under the Facility and 
other eligible expenses, at 31.12.2005). The commitments approved by the Commission are 
shown per quarter.  

Figure 1. EIF commitments to Financial Intermediaries (per quarter). 

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m
R
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E

60

50

40

30

20

10

0

60

19

18

10

6

9

3

3

7

5

27

33

16

9

Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05

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Figure 2 shows the cumulative evolution of operations as at December 2005 concerning the 
budget, the commitments, the actual utilisation and the guarantee calls. 

Figure 2. Cumulative evolution of EIF operations (per quarter). 

EUR 
million 

275 
250 
225 
200 
175 
150 
125 
100 
75 
50 
25 
0 
Q3/01  Q4/01  Q1/02 Q2/02  Q3/02  Q4/02  Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04  Q1/05  Q2/05  Q3/05 Q4/05

Total budget 
Budget available for commitments to FIs (net of EIF fees)
EIF commitments to FIs 
Signature of guarantee agreements between EIF and FIs
Guarantee call payments pursuant to defaulted loans (netpayments, taking into account recovered amounts) 

3.2.3.  Utilisation 

Utilisation  means  the  aggregate  volume  of  guarantees  issued  by  the  EIF  in  relation  to  the 
signed agreements between the EIF and the FIs under the Facility. At 31.12.2005, the average 
utilisation  reached  67%  for  the  Loan  Guarantee  window,  66%  for  the  Micro-credit  window 
and 65% for the Equity window. 

The actual utilisation is fully in line with expectations. It should be recalled that following the 
signature  of  the  guarantee  agreement  between  the  EIF  and  the  FIs,  there  is  an  availability 
period during which FIs may provide guarantees to sub-intermediaries or loans to SMEs and 
include the corresponding SME loans in the portfolio guaranteed by the EIF.  

As  shown  in  Annex  3,  the  availability  period  for  most  FIs  ends  either  on  31.12.2006  or  on 
30.6.2007, thus allowing for a smooth transition to the MAP successor programme, called CIP 
(Competitiveness and Innovation Framework Programme), that will cover the period from 1 
January 2007 until 31 December 2013. 

Following the decision of the European Parliament and the Council to extend the MAP by one 
year,  commitments  by  the  EIF  to  FIs  may  be  made  until  the  end  of  2006.  However,  the 
Facility  will  continue  after  the  last  Community  commitment  in  2006  as  the  guarantee 
agreements  between  the  EIF  and  each  FI  could  stipulate  availability  periods  beyond  2006. 
Furthermore,  the  guarantees  issued  by  the  EIF  under  the  Facility  have  maturities  up  to 
10 years.  This  means  that  payments  with  respect  to  defaulted  loans  will  be  made  for  up  to 
10 years  following  the  end  of  the  last  availability  period,  but  in  no  case  beyond  the  Expiry 

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Date  of  the  MAP  on  31.12.2016,  and  that  reporting,  monitoring  and  control  by  the  various 
actors involved will continue during that time.  

The  utilisation  of  the  SME  Guarantee  Facility  under  MAP  (SMEG01)  appears  to  follow  a 
similar  pattern  to  the  SME  Guarantee  Facility under  the  Growth  and  Employment  Initiative 
(SMEG98). As of 31.12.2005, the results achieved under SME01 were already comparable to 
those  achieved  under  SMEG98  in  terms  of  number  of  loans  covered,  guarantee  amounts 
signed, etc2. 

There is a high demand for both the Loan Guarantee window and the Micro-credit window. 
The  Equity  Guarantee  window  has  been  used  to  a  limited  extent  so  far,  since  the  target 
population  in  terms  of  existing  equity  guarantee  schemes  is  limited.  Furthermore,  technical 
issues,  including  State  aid,  have  imposed  some  constraints  on  the  implementation  of  this 
window. 

No deals have been approved under the ICT window. It appears that there is no demand for a 
sectoral window of this nature. ICT loans can also be guaranteed under the Loan Guarantee 
window. It is not foreseen to continue with this window under the future CIP programme. 

3.2.4.  Leverage effect  

Guarantee  schemes  in  general  have  a  very  high  leverage  effect.  Loan  guarantees  have  high 
leverage  as  they  are  often  provided  in  the  form  of  counter-guarantees  to  institutions  that  in 
turn  provide  guarantees  to  other  actors  such  as  intermediaries  and  banks.  Due  to  the  risk-
sharing between these various actors, the leverage  in  terms of volume of loans supported is 
very  high  (71.1  for  the  Loan  Guarantee  window).  On  the  other  hand,  monitoring,  reporting 
and visibility requirements must be transposed all the way down to the final beneficiaries.  

In the EU-15 the Facility has been implemented with guarantee schemes. In the new Member 
States,  however,  where  agreements  could  not  been  concluded  with  guarantee  institutions 
(either  because  such  schemes  were  not  yet  operational  or  not  able  to  comply  with  the 
additionality  requirements)  agreements  with  banks  were  signed.  The  leverage  is  therefore 
lower: in the EU-15 a leverage of currently 78.6 is achieved, in the New Member States 36.0 
and in the remaining countries Norway, Romania, Bulgaria and Turkey 23.0.  

For  micro-loans,  the  situation  is  usually  different,  in  that  most  EIF  guarantees  are  direct 
guarantees  to  the  intermediaries  who  typically  provide  loans  directly  to  the  Final 
Beneficiaries. In addition there is a focus on high-risk SMEs for micro-loans, which results in 
higher  cap  rates.  The  higher  risk  means  that  with  the  same  budgetary  resources  smaller 
volumes can be financed for micro-loan guarantees than for loan guarantees, so the leverage is 
generally lower than for the loan guarantees (8.1:1).  

Specific information about the leverage effect is provided in Annex 2.  

2 

As of 31.12.2005 115,690 Final Beneficiaries (compared to 137,271 for SMEG98), EUR 173.8 million 
of  committed  budget  allocation  (compared  to  177.5  for  SMEG98)  and  EUR  12,352.5  million  of 
underlying loan volume supported (compared to 10,328.7 for SMEG98). 

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3.2.5. 

State aid  

Particular attention is paid to ensure that the FIs' guarantee or loan programmes are compliant 
with  State  aid  rules,  as  applicable  in  each  case.  Each  FI  is  contractually  obliged  to  sign  a 
declaration as to the applicable State aid regime and the relevant State aid rules are mentioned 
in the agreements between the EIF and the FIs.  

3.2.6.  Loss payments 

By  31.12.2005,  EUR  17.9  million  had  been  paid,  corresponding  to  the  EIF´s  share  of  loss 
payments for defaulted loans net of loss recoveries. More detailed information can be found in 
Annex 5.  

As shown previously in figure 2, the cumulative amount of call payments is still very small 
compared to the cumulative volume of EIF commitments. 

3.2.7.  Accounts 

The financial statements of the Facility are enclosed in Annex 8.  

3.3. 

Financial Intermediaries  

3.3.1.  Overview 

As at 31.12.2005, 45 contracts had been signed with 41 FIs, covering 23 of the 25 Member 
States  as  well  as  Bulgaria,  Romania,  Turkey  and  Norway.  The  contracts  concern  three 
different windows: Loan Guarantee, Micro-credit and Equity Guarantee. Most of the FIs are 
guarantee institutions. 

All EU Member States are now covered under the MAP, with the exception of Luxembourg 
and  Cyprus.  However,  a  request  for  approval  for  an  agreement  with  a  FI  in  Cyprus  was 
submitted  in  December  2005  (and  signed  in  the  first  quarter  2006).  Luxembourg  had  two 
agreements under the ETF Start-up Facility of the Growth and Employment Initiative.  

An  overview  by  window  and  country  can  be  found  in  Annex  3,  table  1.  The  description  in 
table  2  of  the  same  Annex  gives  more  detailed  information  per  country  on  the  FIs,  their 
contracts and the financing products that are guaranteed under the SME Guarantee Facility. 

3.4. 

Beneficiary SMEs and employment 

As already mentioned, the approval of projects under MAP started in May 2002. The number 
of final beneficiaries increased progressively and it stood at nearly 140,000 at the end of 2005 
(of which more than 115,000 under the Loan Guarantee window). 

More detailed information on beneficiary SMEs as at 30.6.2005 is available in Annex 4. 

Information on employment in the final beneficiaries is available at the date of the loan issue. 
Some sample based analyses show that employment at the end of the year is likely to be some 
20% higher. In 2005 about 570,000 persons were recorded as employed at the date of the loan 
issue, against less than 310,000 in 2004. 

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Details  concerning  investments  by  SME  Guarantee  window  as  at  the  end  of  2005  are 
presented in table 2. 

Table 2 – SME Guarantee estimated investment volume by window at 31.12.2005 

Estimated investment
EUR million

Loan Guarantee

Micro credit

Equity Guarantee

Total MAP

15459

362

203

16024

At  the  end  of  2005  Final  Beneficiaries  with  up  to  10  employees  made  up  91%  of  the  total 
number of SMEs under the Loan Guarantee window, 100% under the Micro-credit window (it 
should be noted that the policy guidelines for this window target small SMEs with up to 10 
employees) and 64% under the Equity Guarantee window. 

It is interesting to compare the distribution of SMEs by size under the Facility with that of the 
EU in general. According to the most recent statistics available (source: Eurostat), about 92% 
of SMEs in the EU are micro-enterprises (0-9 employees), 7% are small enterprises (10-49) 
and  1%  are  medium-sized  enterprises  (50-249).  This  clearly  demonstrates  that  the  SME 
Guarantee Facility is firmly focused on the target population of the European Union Charter 
for small enterprises. 

4. 

ETF START-UP FACILITY 

4.1. 

Description of the Facility 

The  objective  of  the  ETF  Start-up  Facility  is  to  increase  the  availability  of  risk  capital  to 
innovative SMEs during their creation and their early stage development. 

The EIF invests in specialised venture capital (VC) funds established specifically to provide 
equity  or  other  forms  of  risk  capital  to  SMEs.  The  funds  considered  under  this  Facility  are 
small or newly established ones, including funds operating at regional level, those focusing on 
specific industries or technologies and funds that finance the exploitation of R&D results. 

Investments  are  made  on  equal  terms  (‘pari  passu’)  with  other  equity  investors.  The  ETF 
Start-up  Investment  Guidelines  specify  that  investments  must  represent  between  10%  and 
25% of the total capital of a VC fund or business incubator, or 50% in exceptional cases such 
as new funds which are likely to have a particularly strong catalytic role in the development 
of VC markets for a specific technology or in a specific region. Investments can be made up 
to a maximum amount of EUR 10 million. In exceptional, duly substantiated cases the amount 
committed may be higher, but will not in any case exceed EUR 15 million. 

The  new  Investment  Guidelines  also  foresee  the  possibility  of  co-investments  in  VC  funds 
with other Community facilities, EIF’s own resources or other resources under mandate. Co-
investments  are  allowed  provided  that  the  aggregate  amount  does  not  exceed  50%  of  the 
capital of the fund.  

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VC fund managers are required to maximise private sector participation and will normally be 
expected  to  obtain  an  amount  of  at  least  50%  of  total  fund  size  from  private  sources.  For 
funds mainly operating in assisted regions (Objectives 1 and 2) or in candidate countries, up 
to 70% of public funding may be authorised in line with State aid rules where appropriate. 

Where the investment policy of a VC fund foresees investments outside the eligible countries, 
the  EIF's  participation  is  reduced  by  the  corresponding  percentage  of  such  investments.  In 
such cases, however, the majority of the capital must be invested in the eligible countries. 

The  EIF  examines  the  fund  proposals  based  on  criteria  which  include  size,  level  of 
involvement from the private sector, investment strategy, target market, deal flow, proposed 
terms, expected rate of return, management team and the extent to which the EIF investment 
in the VC fund is expected to have a catalytic effect in raising funds.  

Following the approval of a VC fund proposal by the Commission, the EIF signs contractual 
agreements with the fund managers and the other equity investors in the fund. Thereafter EIF 
disburses  the  amounts  committed  to  the  VC  funds  in  accordance  with  their  investment 
opportunities and corresponding financing needs. 

4.2. 

Budgetary situation 

4.2.1.  Overview 

As at 31.12.2005, the budgetary resources committed under ETF Start-up amounted to EUR 
143.20 million, which represents 34.4% of the MAP budget committed until the end of 2005. 

This total budget shall cover the full cost of the Facility, including investments in VC funds 
and  any  other  eligible  costs.  Table  3  below  shows  the  breakdown  of  the  budget 
appropriations, interest and other income as well as their utilisation:  

Table 3 Budgetary data as of 31.12.2005 

Resources 

Budget appropriations 

Interest & other income 

Total resources (1) 

Utilisation 

(EUR million) 

142.11 

1.09 

143.20 

EIF  commitments  to  financial  intermediaries  (basis:  approvals  by 
Commission services) 

91.76 

Reserve for EIF management fees and other eligible expenses 

Total utilisation (2) 

Available budget (1)-(2) 

12.58 

104.34 

38.86 

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4.2.2.  Commitments 

Since  the  start  of  the  MAP,  12  requests  for  approval  have  been  submitted  to  the  European 
Commission  services.  9  contracts  have  been  signed  by  the  EIF  with  VC  funds.  One 
investment  of  EUR  15  million  in  Germany  is  still  under  negotiation.  For  the  remaining  2 
approved proposals, the operations have not materialised. It should be noted that 5 out of the 
aforementioned  10  contracts  were  signed  in  2005.  Moreover,  EIF  has  several  deals  in  the 
pipeline which are in the due diligence process and, if successful, could materialise in 2006. 
One of the possible operations concern a VC fund whose investment focus includes Bulgaria, 
Romania, Turkey and Croatia. 

As in the past, the EIF has made significant efforts to achieve a broad uptake. Especially in 
2003 and 2004, it has been difficult to attract private capital for a number of reasons: 

•  difficult market situation especially for early stage financing which represents the 
most risky market segment. VC funds eligible under ETF Start-up belong to the 
most risky sub segment of this market (seed and start-up). Private investors have 
continued to show some risk-aversion and, as a result, several funds have not been 
able to achieve a first closing; 

•  different  stages  of  development  of  the  venture  capital  market  in  the  various 

countries; 

•  difficulties in securing at least 50% of capital from the private sector; 

•  national tax regulations. 

In addition to that, the downturn of the stock exchanges and the reassessment of innovative 
fast-growing businesses have had an impact on the number of new EIF investment proposals 
in 2003 and 2004. This situation improved in 2005, as 5 new contracts were signed under ETF 
Start-up.  The  EIF  pipeline  for  2006  foresees  a  sharp  increase  in  the  number  of  projects, 
confirming  that  the  early  stage  venture  capital  market  targeted  by  the  Facility  is  benefiting 
from  the  recovery  and  positive  outlook  in  the  private  equity  market  reported  on  by  the 
European Private Equity & Venture Capital Association (EVCA). 

Figure  3  shows  the  cumulative  evolution  of  the  total  amount  committed,  corresponding  to 
EUR  91.8  million,  compared  to  the  available  budget  for  commitments  to  VC  funds  (EUR 
130.62  million  as  at  the  end  of  2005).  As  at  31.12.05,  the  total  disbursements  to  VC  funds 
amounted  to  EUR  11.68  million.  Total  proceeds  (repayments  and  dividends)  received  from 
VC funds amounted to EUR 153,656.253. 

3 

To be compared to proceeds of EUR 36,150,104.58 received under ESU98 - Growth and Employment 
initiative 

EN 

12 

   EN 

 
                                                 
Figure 3 Cumulative evolution of EIF operations (per quarter) 

xx 
EUR million 

150 
140 
130 
120 
110 
100 
90 
80 
70 
60 
50 
40 
30 
20 
10 
0 

Q3/01 Q4/01  Q1/02 Q2/02  Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05Q4/2005

Total budget
Budget available for commitments to FIs (net of EIF fees)
EIF Commitment to FIs
EIF Signatures to FIs
Disbursements to FIs

The years 2001 until 2004 were characterised by a strong decrease in investment activity in 
the  European  venture  capital  market  compared  to  the  year  2000.  This  situation  changed  in 
2005.  

2005 has been a record year for European private equity. The figures published by EVCA in 
their press release of 15 June 2006 show that "fundraising in 2005 reached 71.8 billion euros, 
a record for the industry in Europe and over two and a half times the 27.5 billion euros raised 
in  2004".  According  to  EVCA  figures  EUR  10.9  billion  was  raised  for  early  stage  and 
expansion stage venture capital. This represents an increase of 24% from the year 2004.  

Fund  raising  in  the  high-tech  area  doubled  in  size.  The  allocation  to  early  stage  high-tech 
funds increased from EUR 1.3 billion in 2004 to EUR 3.6 billion in 2005.  

According  to  EVCA,  2005  was  also  "a  record year  for  investment,  with  47  billion  euros  of 
equity  capital  invested".  Buyouts  represent  the  majority  (68%)  of  the  total  amount  invested 
while venture activity increased from EUR 10.3 billion in 2004 to EUR 12.7 billion in 2005 
(+23%),  accounting  for  74.7%  of  the  total  number  of  deals  made.  The  EVCA  figures  show 
that  after  years  of  lagging  fundraising,  2005  marked  a  clear  change  in  the  outlook  for  the 
industry, and a revival of growth in venture capital, which is increasingly becoming attractive.  

4.2.3.  Accounts 

The financial statements of the Facility are enclosed in Annex 8.  

EN 

13 

   EN 

 
 
    
 
4.3. 

Financial Intermediaries 

In general, the VC funds in which EIF has invested have an international, national or regional 
focus. Funds are mainly oriented towards early stage investments in high technology sectors, 
such  as  information  and  communication  technologies,  internet,  healthcare  and  life  sciences. 
This is in line with the investment policy of ETF Start-up. 

A short description of the VC funds in which EIF has invested can be found in Annex 6. 

4.4. 

Beneficiary SMEs 

Two investments under MAP were made at the end of 2002, one was made at the end of 2003, 
another  investment  was  made  in  2004  and  another  5  in  2005.  The  VC  funds  are  still  in  the 
early stages of their respective investment periods and it is therefore too early to provide any 
representative information about employment. Up to December 2005, the VC funds under the 
Facility had invested in 35 portfolio companies, which reported a total of 568 employees as at 
June 2005. 

5. 

SEED CAPITAL ACTION 

5.1. 

Description of the Facility 

The  Seed  Capital  Action  (SCA)  aims  to  stimulate  the  supply  of  capital  for  the  creation  of 
innovative  new  businesses  with  growth  and  job-creation  potential,  including  those  in  the 
traditional economy, through support for seed funds, incubators or similar.  

The SCA is managed on behalf of the European Community by the EIF. The action provides 
support  for  the  long-term  recruitment  of  additional  investment  managers  to  reinforce  the 
capacity  of  the  venture  capital  industry  to  cater  for  investments  in  seed  capital.  The  grant 
provided  under  SCA  supports  new  funds  or  incubators,  which  include  seed  capital  in  their 
global investment programme, to cover part of the management cost linked to these labour-
intensive investments. SCA provides grants covering management costs up to EUR 100,000 
per newly recruited manager and for a maximum of 3 new staff per beneficiary. Beneficiaries 
are selected exclusively amongst those in which the EIF participates through own resources or 
through funds mandated by the European Investment Bank (EIB) or the Commission. 

5.2. 

Budgetary situation 

5.2.1.  Overview 

As  at  31.12.2005,  the  budgetary  resources  committed  under  SCA  amounted  to  EUR  5.6 
million, which represents 1.3% of the MAP budget committed until the end of 2005.  

The total budget covers the full cost of the action, including grants paid to the beneficiaries 
and  any  other  eligible  costs.  The  table  below  shows  the  breakdown  of  the  budget 
appropriations and the corresponding utilisation:  

EN 

14 

   EN 

 
Table 4 Budgetary data as of 31.12.2005 

Resources 

Budget appropriations 

Total resources (1) 

Utilisation 

EIF approvals to Financial Intermediaries  

Maximum EIF fees and other eligible expenses 

Total utilisation (2) 

Available budget (1)-(2) 

5.2.2.  Commitments and disbursements 

(EUR million) 

5.60 

5.60 

0.80 

0.36 

1.16 

4.44 

Figure 4 shows the cumulative evolution of the total amount of grants to VC funds (EUR 0.80 
million as at 31.12.2005), of which 0.10 million were paid in 2005. This is in accordance with 
the schedule and conditions set out in the grant agreements, which foresee grants to be paid in 
two  instalments,  the  first  payable  at  the  earliest  18  months  and  at  the  latest  36  months 
following the signature of the grant agreement. 

Figure 4 Cumulative evolution of EIF operations (per quarter) 

12

10

8

6

4

2

x
x

n
o
i
l
l
i

m
R
U
E

0
Q03/01

Q4/01

Q1/02

Q2/02

Q3/02

Q4/02

Q1/03

Q2/03

Q3/03

-►

Q4/05

Total budget
Budget available for commitments to FIs (net of EIF fees)
EIF Commitment to VCFs
Signature of Grant Agreements between EIF and VCFs
Grants p aid to VCFs

5.2.3.  Accounts 

The financial statements of the Facility are enclosed in Annex 8.  

5.3. 

Financial Intermediaries 

The  VC  funds  approved  under  SCA  have  contractual  agreements  with  the  EIF  under  ETF 
Start-up  (MAP  and  Growth  and  Employment  initiative).  As  at  31.12.05,  three  grant 
agreements were signed with two VC funds. More information can be found in Annex 7.  

EN 

15 

   EN 

 
 
 
 
 
6. 

CONCLUSIONS  

The SME Guarantee Facility is being very well taken up by the market. The Loan Guarantee 
and  Micro-credit  windows  have  been  particularly  successful,  allowing  the  participating 
Financial  Intermediaries  to  increase  volumes  and  to  take  on  more  risk.  At  31.12.2005,  the 
SME  Guarantee  Facility  covered  27  Countries  and  45  portfolios  of  41  Financial 
Intermediaries.  Almost  all  Member  States  were  covered  (with  the  exception  of  Cyprus  and 
Luxembourg), plus Bulgaria, Romania, Turkey and Norway. A transaction concerning Cyprus 
was approved in January 2006.  

The leverage is very high, as shown in various independent evaluations. At the end of 2005, 
over 277,000 enterprises had benefited from the Facility under Growth and Employment and 
MAP. The SME Guarantee Facility is the second most important EU programme in terms of 
number  of  final  SME  beneficiaries.  It  is  second  only  to  the  Structural  Funds,  which  have 
significantly higher budgetary resources and a different focus.  

The  SME  Guarantee  Facility  closely  follows  market  needs  and  has  been  designed  from  the 
start  to  adapt  harmoniously  to  each  country’s  specific  market  conditions.  The  Facility  is 
available and accessible to SMEs in all Member States of the Union, the EEA countries and 
candidate countries. Moreover, the Facility targets mainly SMEs with up to 100 staff, that is, 
the sub-group which is most vulnerable to adverse economic conditions.  

The  implementation  of  the  ETF  Start-up  Facility  has  faced  some  difficulties  in  the  period 
2002 to 2003, due to the difficult fundraising situation prevailing on the EU venture capital 
market. It is necessary to stress that precisely in these difficult market conditions, ETF Start-
up had a key role to play, as a unique and important European financial instrument fostering 
investments  in  strategic  sectors  in  the  context  of  the  Lisbon  strategy.  The  demand  for  early 
stage  funding  remains  important,  and  European  technology  centres  (especially  research 
centres  and  universities)  continue  to  generate  valuable  results  in  terms  of  concepts  and 
intellectual property rights.  

The  EVCA  June  press  release4  shows  that  2005  has  been  a  particularly  good  year  for 
European  private  equity  in  terms  of  fundraising,  investments  and  divestments.  VC 
professionals are confident about the positive outlook for the asset class and consider that "the 
positive momentum will continue well into and beyond 2006". 

Regarding the Seed Capital Action, due to its constraints in terms of eligibility criteria and to 
the difficult market conditions for venture capital in the MAP starting period, this programme 
has not been as successful as expected. Only three grant agreements have been signed so far. 

The  evaluation  of  the  EC  Financial  Assistance  Schemes  for  SMEs5  indicated  that  the  MAP 
financial instruments are effective and efficient. Their management by the EIF was considered 
as  a  best  practice  for  their  proximity  to  the  market.  According  to  the  evaluators,  the 
instruments  respond  to  market  failures  (such  as  the  supply  of  finance  for  high  tech),  score 
highly  in  terms  of  additionality  and  complement  schemes  at  Member  State  level,  while 
tending to make better use of financial engineering techniques. They play a catalytic role in 
increasing  the  supply  of  finance  to  SMEs  throughout  the  EU,  including  in  those  countries 

4 
5 

Thomson, PriceWaterhouseCoopers, EVCA: Press release of 15 June 2005, Monte-Carlo 
The  Strategic  Evaluation  of  the  EC  Financial  Assistance  Schemes  for  SMEs,  a  report  from 
Deloitte&Touche for the European Commission (DG Budget), December 2003.  

EN 

16 

   EN 

 
                                                 
where national financial instruments are less developed. The more recent external evaluation 
of the MAP6 reinforces the conclusions of the Financial Assistance Schemes evaluation. 

The evaluation concludes that SME Guarantee Facility and ETF Start-up have made a major 
contribution  to  improving  the  financial  environment  for  business  as  instruments  of  a  public 
policy  supporting  access  to  finance  for  SMEs.  The  evaluators  consider  that  the  financial 
instruments  are  efficiently  implemented  through  the  “chain”  consisting  of  DG  Enterprise—
DG Economic and Financial Affairs—European Investment Fund (EIF). The report confirms 
that the “no one-size-fits-all” approach taken is appropriate: both the venture capital and the 
guarantee instruments can be easily adapted to different and evolving market conditions. The 
main recommendations for the current MAP concern the visibility of the Community support. 
It  is  felt  that  there  is  a  need  to  promote  the  “MAP  brand”  (alongside  that  of  the  EIF)  with 
Financial Intermediaries and national financial and business organisations in order to enhance 
the visibility of Community financial instruments. 

•  The  MAP  successor  programme,  called  CIP 

Innovation 
Programme), was adopted by Council and Parliament on 24 October 20067 CIP will be a 
tool  contributing  to  the  implementation  of  the  political  priorities  set  out  in  the  Lisbon 
agenda,  the  European  Charter  for  SMEs  and  of  new  initiatives  such  as  entrepreneurial 
innovation, competitiveness of enterprises and industrial policy. A particular aim will be to 
help  SMEs,  especially  high-growth,  innovative  companies  in  their  early  and  expansion 
stage of development, to access appropriate financial instruments.  

(Competitiveness  and 

•  For  the  VC  instruments  the  market-oriented  approach  will  be  maintained  but  with  a  few 
changes:  CIP  will  provide  support  and  cover  a  more  significant  part  of  the  life  cycle  of 
usinesses  with  high  growth  potential;  there  will  be  support  for  co-investments  with 
business angels, through early  stage investments; the existence of two  instruments  (GIF1 
focusing  on  early  stage  investments,  and  GIF2  targeting  expansion  stage  investments)  is 
expected  to  somewhat  smoothen  the  effect  of  macro-economic  cycles  (ETF  Start-up  and 
the early stage VC market in general suffered particularly from the downturn, whereas later 
stage  VC  is  less  affected).  VC  funds  whose  main  investment  focus  is  on  eco-innovation 
will be supported with higher intervention rates.  

In  the  area  of  financial  guarantees,  the  Loan  and  Micro-credit  windows  will  be  maintained. 
Mezzanine  financing  will  be  eligible  under  the  Facility.  The  equity  window  will  also  be 
continued. Furthermore, a new securitisation window is envisaged. Its objective is to enable 
originators  to  raise  funding  at  attractive  conditions,  reduce  their  regulatory  and  economic 
capital  requirements,  facilitate  access  to  capital  markets  especially  for  unrated  or  low  rated 
entities  (e.g.  smaller  banks)  and  support  the  launching  of  new  products  (e.g.  granting  loans 
with  the  aim  to  securitise)  with  the  aim  to  enable  those  originators  to  provide  further  SME 
financing.  

The  Capacity  Building  Scheme  encompass  the  Seed  Capital  Action  and  the  Partnership 
Action.  

6 

7 

EN 

The  evaluation  report  was  published  as  a  Commission  Staff  Working  Paper  SEC(2004)  1460  of 
sites:  
and  posted  on  Enterprise  Europe  web 
15.11.2004 
http://europa.eu.int/comm/enterprise/enterprise_policy/mult_entr_programme/programme_2001_2005.htm 
Decision No 1639, OJ L 310/15 of 9.11.2006 

and  French 

in  English 

17 

   EN 

 
                                                 
The Seed Capital Action covers grants for the long-term recruitment of additional staff by VC 
funds with specific investment or technology expertise and has a broader scope compared to 
MAP. 

The Partnership Action (PA) builds on the PHARE SME Finance Facility and the Preparatory 
Action (2004-2006). The PA will provide grants to Financial Intermediaries to cover the cost 
of technical assistance to improve their credit appraisal procedures for SME debt financing. 
The Action will be limited to countries with low banking intermediation. A significant part of 
the  action  will  relate  to  improving  banks’  capacity  to  assess  the  commercial  viability  of 
projects with a significant eco-innovation component.  

The  CIP  will  bring  together  into  a  coherent  framework  specific  Community  support 
programmes and relevant parts of other Community programmes in the fields most critical to 
boosting  European  productivity,  innovation  capacity  and  sustainable  growth,  whilst  also 
addressing  environmental  concerns.  It  will  combine  Community  actions  in  the  fields  of 
entrepreneurship,  SMEs,  industrial  competitiveness,  innovation,  ICT  development  and  use, 
environmental technologies and intelligent energy.  

The Community financial instruments within the CIP will support SMEs in traditional sectors, 
and those investing in ICTs and innovation, including eco-innovation.  

The  CIP  is  proposed  to  become  one  of  the  main  Community  measures  contributing  to 
competitiveness and supporting the Lisbon agenda.  

EN 

18 

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Annex 1: Geographical distribution - all financial instruments 

Table  Breakdown by country of the commitments approved at the end of 2005, all three 
financial instruments taken together: 

COUNTRY 

% 

COUNTRY 

Austria 

Belgium 

Cyprus 

4.3%  Malta 

4.3%  Netherlands 

0.0%  Poland 

Czech Republic 

1.6%  Portugal 

Denmark 

1.3%  Slovakia 

Estonia 

Finland 

France 

Germany 

Greece 

Hungary 

Ireland 

Italy 

Latvia 

0.4%  Slovenia 

1.8%  Spain 

12.4% Sweden 

0.4%  Bulgaria 

0.8%  Romania 

0.2%  Turkey 

12.9% Iceland 

0.3%  Liechtenstein 

% 

0.1% 

2.5% 

1.8% 

0.5% 

0.8% 

0.2% 

13.3% 

3.7% 

0.8% 

1.0% 

0.1% 

0.0% 

0.0% 

0.7% 

18.6% United Kingdom 

10.0% 

Lithuania 

0.4%  Norway 

Luxembourg 

4.7%  TOTAL 

100.0% 

EN 

19 

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Annex 2: SME Guarantee Facility– Leverage (gearing) 

Table  Leverage  effect  (gearing)  achieved  at  31.12.2005  with  the  Community  funds  in 
terms of: 

(a) 

estimated volume of loans, 

(b) 

guaranteed amounts. 

Maximum 
underlying loan 
volume 
supported 
(estimate) 

Allocated 
budget 
(signed) 

Maximum EIF 
Guarantee 
Amount 

Leverage 
effect 

Leverage 
effect 

EUR million 

EUR million 

EUR million 

(a) 

(b) 

173.8 

12,352.5 

3,624.1 

71.1 

20.9 

32.1 

259.1 

177.6 

8.1 

5.5 

Loan 
window 

guarantee 

Micro-credit 
window 

Equity  guarantee 
window 

Total 

17.3 

223.2 

306.3 

89.4 

12,917.9 

3,891.1 

17.7 

57.9 

5.2 

17.4 

Figure Actual  loan  volume  granted  to  SMEs  and  corresponding  amounts  that  the 
beneficiary  SMEs  have  declared  to  have  invested;  period:  third  quarter  2002,  fourth 
quarter 2005. 

n
o

i
l
l
i

m
R
U
E

15000

12000

9000

6000

3000

0

Q302

Q4/02

Q1/03

Q2/03

Q303

Q4/03

Q1/04

Q2/04

Q304

Q4/04

Q1/05

Q2/05

Q305

Q4/05

Aggregate loan volume

Aggregate investment amounts

EN 

20 

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Annex 3: SME Guarantee Facility– Financial intermediaries  

Table 1 - Overview of Financial Intermediaries by country and window – Approvals 

Name

Country

Cap amount
(1)

EUR million

Max EIF 
guarantee 
amount
EUR million

Fis with contract under 
previous Growth and 
Employment initiative

Austria Wirtschaftsservice (AWS)
Fonds de Participation (FdP)
Encouragement Bank
Czech Moravian Bank
Ceska Sporitelna
Growth Fund
KredEx
Finnvera 
SOCAMA
Sofaris 
KfW
TEMPME
Hungarian Development Bank (MFB)
HVB Bank
CIB Hungary
ATI Allenza di Garanzia
ATI Controgaranzia /APEROL
ATI Garanzia Diretta
ATI Sistema Garanzia
Mediocredito Centrale 
Mortgage and Land Bank
INVEGA
Malta Enterprise
BBMKB
Innovation Norway
Bank BPH SA
Polfund
Sociedade de Investimento
BRD 
Raiffeisen Bank
Tatra Banka AS
SZRB 
Slovene Enterprise Fund
CERSA
Almi 
KGF

Fonds de Participation (FdP)
ADIE
KfW
First Step
Cultura
ICO 
Prince's Trust and Prince's Scottish Youth Business 

Austria Wirtschaftsservice (AWS)
Sofaris

LOAN

Austria
Belgium
Bulgaria
Czech Rep
Czech Rep
Denmark
Estonia
Finland
France
France
Germany
Greece
Hungary
Hungary
Hungary
Italy
Italy
Italy
Italy
Italy
Latvia
Lithuania
Malta
Netherlands
Norway
Poland
Poland
Portugal
Romania
Romania
Slovakia
Slovakia
Slovenia
Spain
Sweden
Turkey
MICRO CREDIT

Belgium
France
Germany
Ireland
Norway
Spain
UK

EQUITY

Austria
France

5,6
6,4
2,5
3,6
1,6
4,1
1,2
4,7
4,1
11,7
23,4
1,3
1,2
1,2
0,3
10,2
8,3
2,7
1,7
11,8
1,1
1,2
0,4
8,0
2,0
5,6
0,1
1,5
1,9
1,2
1,0
0,0
0,8
19,8
11,7
0,3

2,6
2,4
15,6
0,1
0,1
3,3
8,0

1,9
15,4

163,3
42,5
21,0
51,4
40,0
39,6
16,0
93,7
205,6
124,4
156,0
14,6
19,4
30,0
5,0
320,0
415,0
135,0
85,0
295,0
15,0
13,6
6,0
320,0
10,3
84,2
1,3
29,0
31,0
20,0
25,0
0,0
5,5
395,0
140,2
5,5

12,8
22,5
78,0
1,1
0,9
22,2
40,9

12,5
76,9

Yes
Yes
No
No
No
Yes
No
Yes
No
Yes
Yes
No
No
No
No
No
No
No
No
Yes
No
No
No
Yes
No
No
No
Yes
No
No
No
No
No
No
Yes
No

Yes
No
Yes
No
No
No
Yes

Yes
Yes

1Including amounts to cover technical support (for micro-credits only), marketing costs and collection of information 

EN 

21 

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Table 2 - Overview of the financing products 

Country 

Financial 
Intermediary 

Austria 

Austria 
Wirtschaftsservice 
(AWS) 

Financing products under MAP 

Austria  Wirtschaftsservice  (AWS)  is  the  result  of  the 
merger  of  Bürges  Förderungsbank  GmbH 
(Bürges), 
Innovationsagentur  GmbH  and  Finanzierungsgarantie-
Gesellschaft  mbH  (FGG).  The  Austria  Wirtschaftsservice 
GmbH  (AWS)  is  100%  owned  by  the  Republic  of  Austria 
and  operates  the  public  guarantee  activities  in  Austria. 
Bürges  had  an  agreement  with  the  EIF  under  the  Growth 
and Employment programme.  

Under  the  MAP  Loan  Guarantee  window,  two  guarantee 
programmes are counter-guaranteed by EIF: 

•  The 

for 

young 

programme 

entrepreneurs 
Jungunternehmer-Förderungsaktion  supports  start-
ups  and  ownership  transfer  of  small  SMEs  in  all 
sectors,  except  agriculture  and  tourism.  Eligible 
SMEs are start-ups that have a business history of up 
to  24  months  and  in  the  case  of  transfer  of 
ownership not more than 50 employees. Guarantees 
cover  loans  for  working  capital  and  investment 
financing,  including  intangible  assets.  Maximum 
loan amount is EUR 300,000 for up to 10 years.  

•  The  programme 

for 

structural  development 
Unternehmensdynamik  supports  innovative  SMEs, 
i.e.  the  development  of  new  products,  services  or 
significant  improvement  of  existing  products  or 
services  in  all  sectors,  except  agriculture  and 
tourism. Eligible SMEs are those with less than 100 
employees.  Guarantees  cover  loans  for  investment 
financing.  The  maximum  loan  amount  is  EUR 
750,000 and the maturity is up to 10 years. 

The  EIF  guarantee  has  supported  an  increase  in  the  loan 
volumes and also facilitated the access to finance as AWS is 
waiving the collateral requirements for amounts up to EUR 
75,000.  The  cap  amount  has  been  increased  and  the 
availability period for the intermediary has been prolonged 
and  will  end  on  30.06.2007.  Since  the  signing  of  the 
agreement  under 
the  MAP  Loan  Guarantee  Facility 
window, 2,185 loans have been guaranteed with an average 
loan amount of EUR 56,653 and EUR 242,733 respectively. 

Under  the  MAP  Equity  Guarantee  window,  one  guarantee 
programme is counter-guaranteed by EIF. 

EN 

22 

   EN 

 
the 

The equity programme was introduced in 1997 and aims at 
stimulating  direct  private  equity  investments  in  Austrian 
SMEs  in  order  to  improve  their  financial  structure.  The 
invested  capital  only.  Small 
guarantee  covers 
investments (amounts up to EUR 20.000) of individuals are 
guaranteed  up  to  100%,  higher  amounts  of  other  investors 
are  covered  up  to  50%.  AWS  enters  into  a  tri-partite 
guarantee agreement with the SME and the investor. AWS 
guarantees  either  equity  participation  (shares  or  similar)  or 
quasi-equity  (risk-capital  which  is  subordinated  to  other 
creditors,  has  a  minimum  term  of  10  years  and  no  fixed 
the  profit 
interest, 
generated  by  the  SME).  Guaranteed  equity  must  be  in  the 
form of additional cash (no substitution of already existing 
(guaranteed  equity 
equity).  Take-overs  are  excluded 
investments  must  be  a  minority  of  the  voting  capital).  The 
guarantee covers the invested capital but not the return. The 
guarantee  is  callable  in  the  event  of  insolvency  of  the 
investee. The maximum maturity is 10 years. 

interest  depending  exclusively  on 

Belgium 

Fonds de 
Participation, 

(FdP) 

The availability period for the equity agreement will end on 
30.6.2007.  Since  the  signing  of  the  agreement  under  the 
MAP  Equity  Guarantee  window  in  2004,  52  investments 
have  been  guaranteed,  with  an  average  amount  of  EUR 
219,047. No losses have been reported as of 30/06/2005 

is  a  public 

Fonds  de  Participation,  FdP, 
institution, 
operating  on  a  national  basis.  It  already  had  an  agreement 
under  the  Growth  and  Employment  programme  and  under 
the  MAP  it  currently  has  two  agreements,  one  under  the 
Loan  Guarantee  window  and  one  under  the  Micro-credit 
Guarantee window. The utilisation of the FdP  programmes 
has been rapidly growing under the Facility. Therefore, the 
contract  was  amended  under  the  Micro-credit  Guarantee 
window,  the  volumes  were  increased  and  the  availability 
period extended until 30.6.2007. In September 2003 a new 
agreement  under  the  Loan  Guarantee  window  was  signed 
and the availability period was extended to 30.6.2007. 

FdP offers different loan products to start-ups: 

•  Prêts  lancement  -  subordinated  loans  to  unemployed 

people who wish to create a business;  

•  Prêts création - subordinated loans to entrepreneurs who 
have  conducted  their  business  activity  for  less  than  4 
years or who wish to establish their own business and are 
not unemployed;  

EN 

23 

   EN 

 
 
•  Prêts solidaires - granted to financially excluded persons 
such  as  unemployed  persons  without  any  income  or 
immigrants  waiting  for  a  regularisation  of  their  status, 
wishing to become entrepreneur;  

•  Prêts  BA+  -  a  newly  launched  lending  programme 
targeting  entrepreneurs  or  SMEs  with  no  access  to  the 
classic banking system and whose business has reached a 
critical  development  stage  or  whose  companies  are 
developing  innovative  technologies.  Borrowers  of  BA+ 
must benefit from the support of a Business Angel. 

The  EIF  guarantee  enhances  the  access  to  finance  with 
higher guarantee cover, reduced cost of financing and start-
up  financing.  The  extension  of  prêts  lancement  and  prêts 
création  are  facilitated  by  the  financial  support  of  MAP. 
The  availability  period  for  both  contracts  will  end  on 
30.6.2007. 

to  stimulate  export  activities.  EB 

Encouragement  Bank  AD  (EB)  is  a  state-owned  bank 
operating nation-wide (promotional bank) based in Sofia. Its 
role  is  to  provide  access  to  long-term  financing  to  SMEs 
the  only 
and 
promotional  institution  for  SMEs  in  Bulgaria,  acting  as  a 
complement  to  banking  financing.  The  contract  with  EB 
was  the  first  in  the  newly  eligible  countries  following  the 
notification  in  February  2003.  Thanks  to  the  Facility  EB 
provides  enhanced  access  to  finance  by  waiving  partly  its 
collateral requirements.  

is 

Bulgaria 

Encouragement 
Bank AD 

EB  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee  window.  All  loans  granted  under  the  EB 
programmes  for  investment  financing  (without  limitations 
in terms of tangible assets, intangible assets and/or working 
capital) and with a minimum maturity of 3 years are eligible 
for cover under the Facility. Loans are provided to finance 
start-up,  development  as  well  as  modernisation  of  a 
company. Eligible borrowers are SMEs, including start-ups, 
with up to 100 employees.  

The  availability  period  for  the  intermediary  will  end  on 
30.06.2007. 

Czech 
Republic 

Czech Moravian 
Guarantee and 
Development Bank 

The  Czech–Moravian  Guarantee  and  Development  Bank 
(CMZR  Bank)  was  incorporated  in  1992  as  a  financial 
institution  of  the  Czechoslovak  State.  It  is  a  promotional 
bank, based in Prague.  

EN 

24 

   EN 

 
It has an agreement with the EIF under the Loan guarantee 
window.  Loans  for  investment  financing  and  with  a 
minimum  maturity  of  3  years  are  eligible  for  cover  under 
the  Facility.  Eligible  borrowers  are  SMEs,  including  start-
ups, with up to 100 employees. With the help of the Facility, 
volumes are increased.  

After a slow start, utilisation increased in 2005 and volumes 
were consequently increased. The availability period for the 
intermediary has been extended and will end on 30.6.2007. 

CS  was  established  in  1991  and  is  a  private  financial 
institution based in Prague. Erste Bank owns almost 98% of 
the share capital. It operates as a commercial bank offering 
the  full  range  of  banking  services.  Due  to  its  history  as  a 
savings bank CS operates mainly as a retail and SME bank. 
The  business  segment  is  seen  as  an  important  source  for 
growth  for  the  bank  over  the  next  few  years.  CS  is  the 
largest retail bank in the Czech Republic with a total of 667 
branches. 

Ceska Sporitelna 
(CS) 

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee window. Eligible borrowers are SMEs, including 
start-ups,  with  up  to  100  employees;  the  portfolio  covers 
investment  financing  with  a  minimum  maturity  of  3  years. 
With  the  help  of  the  Facility,  collateral  requirements  are 
reduced  and 
increased.  The 
lending 
availability  period  for 
intermediary  will  end  on 
30.6.2007 .  

to  start-ups 
the 

is 

Denmark 

Growth Fund 
(Vaekstfonden) 

The  Growth  Fund  (Vaekstfonden)  is  a  public  scheme 
providing  guarantees  and  venture  capital  in  Denmark.  The 
Growth  Fund  already  had  an  agreement  under  the  Growth 
and Employment initiative.  

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee window. 

The  scheme  provides  guarantees  for  various  financing 
needs: start-ups, innovation, ownership succession, business 
growth,  market  development  and  job  creation  for  the 
disabled.  Start-ups  represent  the  most  important  category, 
with  more  than  one  third  of  the  total  guarantee  volume. 
Furthermore, micro enterprises (i.e. companies with up to 5 
employees)  represent  95%  of 
the  portfolio  currently 
guaranteed  by  EIF.  It  is  the  only  SME  loan  guarantee 
scheme operating in Denmark. 

EN 

25 

   EN 

 
 
 
Eligible  companies  are  those  with  growth  potential  and  up 
to  100  employees.  The  maximum  loan  amount  is  EUR 
675,000  and  the  maturity  is  up  to  10  years.  Thanks  to  the 
Facility,  the  Growth  Fund  has  been  able  to  increase  its 
guarantee  volumes.  The  availability  period 
the 
intermediary will end on 30.6.2007. 

for 

losses.  Growth  Fund 

During the first two years, all eligible loans were guaranteed 
automatically,  without  sharing  collateral  with  the  banks. 
This  caused  heavy 
therefore 
implemented  a  new  strategy  starting  its  independent  risk 
assessment  and  demanding  collateral  to  the  borrowers.  It 
also  launched  a  marketing  campaign  to  boost  demand. 
Working with banking and SME experts led to an increase 
of activities during the last two years. 

KredEx was founded by the Estonian Ministry of Economic 
Affairs and Communications in July 2000. It is a guarantee 
fund  which  aims  to  support  the  development  of  SMEs  as 
well as export and housing. KredEx is based in Tallinn. Its 
operations  are  supervised  by  the  Ministry  of  Economic 
Affairs  and  Communications.  KredEx 
the  only 
organisation in Estonia providing guarantees for SME loans 
and 
it  has  signed  co-operation  agreements  with  all 
commercial banks in Estonia. 

is 

Eligible borrowers are SMEs, including start-ups, with up to 
100  employees.  Guarantees  are  provided  for  investment 
loans and leases with a maturity of up to 10 years. 

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee window. 

The  availability  period  for  the  intermediary  will  end  on 
30.6.2007. The maximum portfolio volume and the counter-
guarantee cap have been increased in November 2005, clear 
signal of a very positive performance. 

Finnvera  is  a  public  institution  providing  loans  and 
guarantees to SMEs. It already had an agreement under the 
Growth  and  Employment  initiative.  Under  the  MAP  Loan 
Guarantee  window,  EIF  counter-guarantees  two  different 
programmes.  

The  two  different  programmes  were  created  thanks  to  the 
Facility: 

1.  “Growth and Employment Guarantee Scheme”, targeted 
at  companies  with  up  to  100  employees,  job  creation 
potential  and  an  element  of  innovation  in  the  products 
offered. 

Estonia 

Estonian  Credit  and 
Export  Guarantee 
Fund (KredEx) 

Finland 

Finnvera 

EN 

26 

   EN 

 
France 

ADIE 

SOCAMA 

2.  “Small  Enterprise  Guarantee  Scheme”,  targeted  at 
companies with up to 50 employees and with a specific 
window for entrepreneurs between 18 and 30 years.  
Guarantees  issued  for  debt  finance  (loans,  leasing  and  hire 
purchase  financing)  are  eligible  for  the  EIF  guarantee  and 
both existing and new companies can be supported.  

The  guarantee  volume  was  already  increased  and  the 
availability period of the existing agreement was extended. 
The current availability period will end on 30.6.2007. 

ADIE (Association pour le Droit à l'Initiative Economique) 
is  a  non-profit  organisation.  Through  its  activity,  ADIE 
enables  unemployed  and  disadvantaged  people  to  have 
access  to  bank  financing  in  order  to  set  up  their  own 
business.  It  also  provides  mentoring  services  to  SMEs 
through  a  network  of  more  than  650  volunteers.  It  has  an 
agreement  with  EIF  under  the  Micro-credit  Guarantee 
window  and  since  the  signing  of  the  agreement  in  2002 
7,413 loans have been guaranteed with an average amount 
of EUR 3,510.  

The products covered are: prêts solidaires (74% of ADIE's 
loan  portfolio)  and  prêts  de  développement  (in  both  cases 
guarantees  for  loans  extended  by  banks),  prêts  solidaires 
progressifs  and  prêts  d'honneurs  (both  granted  on  ADIE's 
own funds). 

The  availability  period  was  extended  and  will  end  on 
30.6.2007.  The  cap  amount  as  well  as  the  maximum 
portfolio  volume  have  been  increased  in  December  2005. 
This is a signal of very positive performance. 

SOCAMA  is  a  network  of  mutual  guarantee  societies  in 
France  belonging  to  Groupe  Banques  Populaires.  The 
counter  party  of  EIF  is  the  Banque  Fédérale  des  Banques 
Populaires  which  is  responsible  for  implementing  the 
agreement through the network of regional banks with their 
more  than  2,000  branches  in  France.  Under  the  Facility, 
SOCAMA was able to create a new programme that targets 
existing SMEs and start-ups and finances small investments 
without any collateral requirements. 

It has an agreement with the EIF under the Loan Guarantee 
window. The “Prêt Express SOCAMA Europe” consists of 
medium-term  loans  (2-7  years)  granted  to  finance  a  wide 
range of investment projects. The maximum loan amount is 
EUR  30,000,  guaranteed  up  to  100%  by  SOCAMA. 
SOCAMA  waives  all  collateral  requirements  with  the 
exception of the request to the borrower to subscribe a life 
insurance.  Eligible  SMEs  are  companies  with  up  to  100 
employees, including start-ups. 

EN 

27 

   EN 

 
 
SOFARIS 

A  new  programme  supporting  business  transfers  has  been 
added  and  is  covered  under  the  Facility.  Amounts  were 
increased  and  the  availability  period  was  extended  to 
31.12.2006. 

SOFARIS  is  a  national  public  guarantee  institution.  The 
scheme  targets  mainly  young  SMEs  or  those  that  are 
developing innovative technologies, irrespective of the date 
of their  establishment.  SOFARIS  cooperated already under 
the Loan Guarantee window with the EIF under the Growth 
and  Employment  programme.  Currently, 
two 
agreements  under  MAP.  One  agreement  has  been  entered 
into under the Loan Guarantee window, the second one has 
been signed under the Equity Guarantee window.  

it  has 

For the Loan Guarantee window, the covered sub-portfolio 
consists of guarantees for micro enterprises issued under the 
SOFARIS programme  Création, that supports medium and 
long  term  financing  for  starting  up  new  enterprises,  new 
enterprises  established  by  existing  enterprises  for  the 
development  of  new  activities  or  investment  activities  of 
enterprises with a business history of less than 3 years. 

Small SMEs with up to 9 employees are eligible for the EIF 
guarantee.  SOFARIS  was  able  to  increase  its  volumes 
thanks  to  the  Facility.  The  cap  amount  was  increased  and 
the  availability  period  was  extended  and  will  end  on 
30.6.2007. 4,580 loans were included as of 30.6.2005.  

The  Equity  scheme  finances  equity  and  quasi  equity 
investments  (shares,  convertible  bonds,  participating  loans 
and  participation  in  limited  partnerships)  made  by  venture 
capital funds in SMEs established in France. The scheme is 
open to all venture capital funds. The scheme targets mainly 
young  SMEs  or  those  that  are  developing  innovative 
technologies, irrespective of the date of their establishment. 
Guarantees  have  a  maximum  term  of  10  years  and  are 
callable  after  a  9  month  grace  period  in  the  case  of 
bankruptcy  or  of  disinvestments  with  a 
the 
company’s  equity  has  fallen  below  50%  of  the  original 
amount. Thanks to the Facility, SOFARIS was in a position 
to  launch  a  new  programme  focusing  on  innovative 
technology  and  specifically  designed  to  meet  in  full  the 
objectives  and  requirements  of  the  Equity  Guarantee 
Facility. The cap amount was increased and the availability 
period was extended to 30.6.2007.  

loss 

if 

EN 

28 

   EN 

 
 
Germany 

Kreditanstalt für 
Wiederaufbau, 
(KfW) 

At  the  end  of  December  2002,  the  German  government 
decided  to  fully  integrate  Deutsche  Ausgleichsbank,  DtA, 
into  Kreditanstalt  für  Wiederaufbau,  KfW.  KfW  is  the 
largest promotional bank in Germany, offering a variety of 
programmes for the support of companies. 

KfW  and  DtA  already  had  agreements  with  the  EIF  under 
the Growth and Employment programme. Under the MAP, 
it has two contracts with the EIF, one under the Micro-credit 
guarantee  window  and  one  under  the  Loan  Guarantee 
window. 

The micro-lending programme was the first one operating at 
national  level  and  providing  strong  incentives  to  banks  to 
enter  into  this  segment  of  the  market.  Under  the  Loan 
programme,  the  bank  provides  slightly  larger  loans  to 
starters. Taking into account the low utilisation, the contract 
for 
the 
the  micro-lending  programme  was  amended: 
volumes were reduced and the availability period extended.  

The  Startgeld  programme  supports  people  setting  up  their 
own business and therefore job creation. Eligible SMEs are 
those  with  up  to  100  employees.  The  maximum  eligible 
loan  amount  under  the  Startgeld  programme  may  not 
exceed EUR 50,000 with a maturity of 10 years. 

Due  to  the  large  number  of  start-ups  requesting  finance 
under  the  Startgeld  programme,  DtA  decided  to  launch  a 
micro-lending  facility  specifically  designed  to  meet  the 
requirements  of  the  Micro-credit  Guarantee  window  under 
MAP. 

In accordance with the eligibility criteria of the Micro-credit 
Guarantee  window,  SMEs  with  up  to  10  employees  are 
eligible  for  the  loans  provided  by  DtA  under  its  micro-
lending programme. 

The  programme  targets  entrepreneurs  setting  up  their  own 
business  (either  for  the  first  time  or  entrepreneurs  who 
previously  failed)  and  part-time  businesses.  The  target 
group  includes  legal  immigrants  and  financially  excluded 
people.  

The  incentive  for  on-lending  banks  to  enter  into  this 
segment of the market is stronger with the EIF support, due 
to the risk sharing arrangements.  

Amounts under the Startgeld programme were increased. 

The availability period for the Loan Guarantee window will 
end  on  30.12.2006,  while  the  agreement  under  the  Micro-
credit Guarantee window is extended until 30.6.2007. 

EN 

29 

   EN 

 
Greece 

Credit Guarantee 
Fund of Small and 
Very Small 
Enterprises 
(TEMPME) 

TEMPME  is  a  financial  institution  based  in  Athens.  The 
initial  share  capital  was  co-financed  by  the  European 
Union/ERDF 67% and the Greek state 33%. Established in 
2002  and  having  started  its  activity  in  2004,  TEMPME  is 
the only Greek Guarantee Scheme that provides guarantees 
to  financial  institutions  covering  SME  loans.  Its  main 
objective  is  to  support  the  establishment,  growth  and 
development  of  SMEs  by  facilitating  their  access  to 
financing,  especially  when  they  cannot  offer  sufficient 
collateral.  Guarantees  are  provided  for  micro-loans  with  a 
maturity of minimum 18 months and loans with a maturity 
of minimum 3 years. The maximum loan amount supported 
is  capped  at  EUR  320,000.  TEMPME  covers  70%  of  the 
bank  loan.  Guarantees  are  offered  to  the  15  commercial 
banks that have already signed co-operation contracts, thus 
covering  all  the  13  regions  of  Greece.  Eligible  borrowers 
are SMEs, including start-ups, with up to 30 employees and 
with an annual turnover of up to EUR 7 million. 

TEMPME  currently  has  an  agreement  with  the  EIF  under 
the  Loan  Guarantee  window  which  leads  to  an  increased 
guarantee  rate  and  provides  additional  incentives  to  the 
the 
the  guarantee 
banks 
implementation of the guarantee scheme in Greece. 

in  order 

to  help 

to  use 

Hungary 

CIB Bank Lt. 

The  availability  period  for  the  intermediary  will  end  on 
30.6.2007. 

CIB  Bank  was  set  up  by  a  consortium  of  European  and 
Japanese  banks  as  well  as  the  National  Bank  of  Hungary 
and  it  was  authorised  to  carry  out  commercial  business 
activities  in  December  1995.  At  present  it  is  a  member  of 
BancaIntesa  Group,  an  Italian  bank.  The  bank  and  its 
subsidiaries  (CIB  group)  offer  universal  banking  services. 
As  of  31.3.2004  it  had  a  nation-wide  network  of  62 
branches.  As  of  31.12.2004  CIB  Bank  ranks  4th  in  the 
country  by  total  assets  and  it  pays  particular  attention  to 
increasing its market share in the SME sector. 

SME  lending  is  a  rather  new  activity  for  the  bank  and 
thanks  to  the  MAP  guarantee  under  the  Loan  Guarantee 
window,  the  bank  launched  a  new  programme  to  provide 
enhanced  access  to  finance  especially  to  small  and  micro 
companies.  It  includes  reduced  collateral  requirements, 
extended  loan  maturities  and  a  higher  financing  rate.  The 
availability period will end on 31.12.2006 

Hungarian 
Development Bank 
Ltd. (MFB) 

The  Hungarian  Development  Bank  (MFB)  is  a  100% 
government-owned  bank  with  the  objective  to  develop  and 
modernise  the  Hungarian  economy.  It  is  focusing  on  long-
term financing to SMEs and on infrastructure projects.  

EN 

30 

   EN 

 
 
Loans  have  a  minimum  maturity  of  3  years  (and  up  to  10 
years)  and  a  grace  period  of  up  to  2  years.  Eligible 
investments include the establishment of new premises, the 
extension of existing premises and the start of new activities 
that  .  Thanks  to  the  Facility,  on-lending  banks  only  keep 
part  of 
the  collateral 
the  risk  and 
requirements (or price).  

therefore 

lower 

HVB Bank 
Hungary Rt. 

Ireland 

First Step 

MFB  had  an  agreement  with  the  EIF  under  the  Loan 
Guarantee  window  with  nil  utilisation.  Therefore,  the 
cooperation  has  not  been  extended  and  stopped  on 
31.12.2005.  

HVB  is  the  result  of  a  merger  between  Bank  Austria 
Creditanstalt Hungary Rt. and Hypo Vereinsbank Hungaria 
Rt. in September 2001. It provides the full range of financial 
services 
to  corporate  clients  and  consumers,  with  a 
particular attention to SMEs. 

Loans for investment financing with a minimum maturity of 
3  years  are  eligible  for  cover  under  the  Facility.  Eligible 
borrowers  are  SMEs  with  up  to  100  employees.  HVB  can 
finance  up  to  75%  of  the  investment  cost.  Thanks  to  the 
Facility, collateral requirements were reduced. 

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee  window.  Due  to  a  good  take  up  amounts  have 
been increased. 

The  availability  period  for  the  intermediary  will  end  on 
30.6.2007  and  the  maximum  portfolio  volume  has  been 
doubled.  

The  agreement  signed  with  First  Step  Limited  under  the 
Micro-credit  Guarantee  window  is  the  first  deal  in  Ireland, 
since  there  was  no  agreement  under  the  Growth  and 
Employment  initiative.  First  Step  is  a  non-profit  private 
company with charitable status. It is the only private sector 
organisation in Ireland providing micro-lending nation-wide 
with a mentoring programme.  

It  has  an  agreement  with  the  EIF  under  the  Micro-credit 
Guarantee  window.  The  programme’s  main  objective  is  to 
provide  access  to  finance  for  start-ups  with  loans  for 
investments  and  working  capital.  Borrowers  must  have 
tried,  but  failed,  to  obtain  financing  elsewhere.  Only 
companies  with  up  to  10  employees  are  eligible  and  EUR 
25,000 
the  Final 
Beneficiary. All  loans  have a maturity of 3 years and First 
Step does not require collateral. Up to 100% of the project 
cost  can  be  financed.  Furthermore,  First  Step  provides 

the  maximum  amount 

lent 

to 

is 

EN 

31 

   EN 

 
 
mentoring services. With the help of the Facility, First Step 
can substantially increase its loan activity.  

The  availability  period  of  the  intermediary  will  end  on 
30.6.2007  and  both  the  guarantee  cap  and  the  maximum 
portfolio  volume  have  been  reduced  in  December  because 
of the low utilisation of the Facility. This is due to the fact 
that the cooperation with the two largest Irish banks did not 
materialise. 

Italy 

Under  the  Growth  and  Employment  programme  the  EIF  signed  contracts  with  a 
number of Italian mutual guarantee schemes, “Confidi”. Under the MAP some of 
those  Confidi  formed  joint  ventures  as  temporary  business  associations  with  the 
aim to jointly apply for the MAP Loan Guarantee window. Although those Confidi 
operate  in  different  regions,  they  apply  similar  standards  and  it  was  therefore 
possible to group them and establish uniform cap rates. One member of each joint 
venture is the general co-ordinator responsible vis à vis the EIF for reporting and 
the  management  of  the  Facility  (guarantee  calls  etc.).  The  members  of  these 
“Confidi” associations are companies, chambers of commerce and entrepreneurial 
associations. 

ATI Allenza di 
Garanzia 

(ALL.GAR) 

ALL.  GAR  is  a  joint  venture  set  up  as  a  temporary 
association of business and consists of 7 “Confidi” (Mutual 
Guarantee  Funds).  It  has  an  agreement  with  the  EIF  under 
the Loan Guarantee window. It offers collective guarantees 
and  facilitates  access  to  credit and  bank  loans,  particularly 
for  SMEs.  The  geographical  area  covered  is  Piemonte, 
Lombardia,  Trentino  Alto  Adige,  Veneto  and  Emilia 
Romagna.  

the  Facility, 

Under 
the  EIF  counter-guarantees  all 
investment loans and leasing transactions with a maturity of 
at  least  3  years,  as  well  as  mezzanine  loans  and  loans 
granted  to  directly  support  the  recruitment  of  new  staff  by 
the borrower in connection with an investment plan. Thanks 
to the EIF, guarantee volumes can be increased and access 
to  finance  can  be  enhanced  (higher  guarantee  cover, 
reduced cost of financing, start-up financing). 

The  counter-guarantee  cap  and  the  maximum  portfolio 
volume  were  revised  in  July  2005  and  the  availability 
period for the current contract was extended by another year 
until  31.12.2006.  The  utilisation  under  the  Facility  is  very 
high  and  over  3,100  SMEs  has  so  far  benefited  from  a 
counter-guarantee. 

ATI 
Controgaranzia/ 

APEROL 

ATI  Controgaranzia 
Italian  mutual 
represents 
guarantee  schemes  whose  main  geographical  area  of 
activity is Lombardia, Emilia Romagna and Piemonte. They 
extend  counter-guarantees  to  the  benefit  of  their  members, 
local  Confidis  that  in  turn  guarantee  debt  finance  given  to 

three 

EN 

32 

   EN 

 
 
 
 
ATI Garanzia 
Diretta 

ATI Sistema 
Garanzia Umbria-
Marche 

(SIS.GAR) 

SMEs through local banks. It has an agreement with the EIF 
under  the  Loan  Guarantee  window.  By  applying  for  the 
Loan  Guarantee  Window,  the  ATI  members  are  able  to 
provide  better  access  to  finance  to  artisan  SMEs  through 
local Confidis at acceptable costs since the interest rates are 
lowered  for  SMEs  not  having  adequate  collateral.  SMEs 
with up to 100 employees are eligible for the EIF guarantee, 
although most companies are micro-enterprises. 

The  counter-guarantee  cap  as  well  as  the  maximum 
portfolio  volume  have  been  increased  and  the  availability 
period has been extended to 31.6.2007. 

ATI  Garanzia  Diretta  consists  of  two  mutual  regional 
guarantee  schemes  Artigiancredito  Toscano  (“ACT”)  and 
Fidart  Calabria  (“FIDCAL”).  It  operates  in  the  Tuscany 
region  and 
in  Calabria.  EIF  counter-guarantees  all 
investment  and  start-up  loans  with  a  maturity  of  at  least  3 
years and loans granted to directly support the recruitment 
of new staff by the borrower linked to an investment plan. 
Thanks  to  the  Facility,  enhanced  access  to  finance  for 
SMEs  (higher  volumes,  reduced cost  of  financing,  start-up 
financing) is provided, in particular in Calabria, which is an 
Objective  1  region  and  where  access  to  debt  financing  for 
SMEs is even more difficult. 

The  counter-guarantee  cap  and  the  maximum  portfolio 
volume have been increased. The availability period of the 
agreement  signed  under  the  Loan  Guarantee  Window  will 
end on 30.6.2007. So far, 7,591 loans have been guaranteed.

ATI  Sistema  Garanzia  Umbria-Marche 
(SIS.GAR) 
represents  three  Italian  mutual  guarantee  schemes  and  a 
financial  institution  whose  main  geographical  areas  of 
activity  are  Umbria  and  Marche.  It  has  an  agreement  with 
the  EIF  under  the  Loan  Guarantee  window.  It  provides 
better  access  to  finance  to  artisan  and  industrial  SMEs  at 
acceptable costs: thanks to theguarantee, companies without 
adequate  collateral  gain  access  to  medium  and  long-term 
bank 
loans.  SIS.GAR  provides  either  direct  or  co-
guarantees to financial institutions or counter-guarantees to 
local Confidis.  

The  guarantees  cover  all  investment  loans  with  a  maturity 
of at least 3 years and loans granted to directly support the 
recruitment of new staff by the borrower. SMEs with up to 
100  employees  are  eligible,  although  most  companies  are 
expected  to  be  micro-enterprises.  The  operation  provides 
for  increased  access  to  finance  for  SMEs  through  higher 
financing 
guarantee  volumes  and  more 
conditions. 

favourable 

EN 

33 

   EN 

 
 
 
Mediocredito 
Centrale (MCC) 

Latvia 

Mortgage and Land 
Bank 

Lithuania 

INVEGA 

The  cap  amount  was  further  increased  and  the  availability 
period  for  the  intermediary  was  extended  and  will  end  on 
30.6.2007. 

MCC  is  a  public,  national  guarantee  fund.  MCC  issues 
direct  loan  guarantees  to  banks  and  counter-guarantees  to 
guarantee  schemes  for  long-term  investment  loans  with  a 
maturity  of  at  least  3  years.  It  already  had  an  agreement 
under the Growth and Employment Initiative. In the context 
of MAP, it has an agreement  with the EIF under the Loan 
Guarantee window. Eligible loans are long-term investment 
loans as well as start-up financing to SMEs with up to 100 
employees. Thanks to the Facility MCC is able to increase 
its  loan  volumes:  2,293  loans  have  been  guaranteed  since 
the signing of the agreement . 

Volumes  were  increased  and  the  availability  period  was 
extended until 30.6.2007.  

The  Mortgage  and  Land  Bank  of  Latvia  -  Mortgage  Bank, 
established in 1993, is 100% owned by the Government of 
Latvia  and  operates  in  practice  as  a  national  development 
bank.  Under  the  Facility,  the  bank  is  providing  enhanced 
access  to  finance  by  lowering  its  collateral  requirements, 
financing  a  higher  portion  of  the  investment  cost  and  by 
providing  loans  to  SMEs  that  would  otherwise  not  have 
access  to  bank  loan  finance.  It  was  expected  that  the 
target  start-ups  and  micro-
portfolio  would  mainly 
enterprises, but during 2005, as utilisation was low, the bank 
decided to widen the scope of its operations under the Loan 
Guarantee window. 

Eligible borrowers are SMEs, including start-ups, with up to 
100  employees,  with  a  particular  focus  on  start-up 
companies,  micro-enterprises  and  companies  proposing 
risky, but innovative and viable projects.  

The  availability  period  has  been  extended  and  will  end  on 
30.6.2007. 

INVEGA  is  a  limited  liability  company  established  in 
November  2001,  100%  owned  by  the  Lithuanian  state  and 
based  in  Vilnius.  The  preliminary  role  of  INVEGA  is  to 
support  Lithuanian  SMEs  by  extending  guarantees  on 
investment  loans  provided  by  banks  to  micro  and  small 
companies  with  up  to  50  employees.  INVEGA  is  the  only 
institution with such a mission in Lithuania.  

Eligible borrowers are SMEs, including start-ups, with up to 
50  employees.  The  EIF  guarantees  investment  financing 
with a minimum maturity of 2 years. The average maturity 
of  loans  covered  is  at  least  3  years.  Thanks  to  the  Facility, 
INVEGA can increase its guarantee volumes.  

EN 

34 

   EN 

 
 
Malta 

Malta Enterprise 
(ME) 

Netherlands 

SME Credit 
Guarantee Scheme 
(“BBMKB 
Scheme”), 

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee window.  

After  a  slow  start,  utilisation  has  picked  up;  it  is  expected 
that  INVEGA  will  reach  full  utilisation  by  the  end  of  the 
availability period, i.e. 30.6.2007. 

ME was set up in January 2004 as the Maltese corporation 
to  promote  the  establishment  and  expansion  of  business 
enterprises  of  Malta.  It  took  over  activities  from  three 
former  government  agencies.  It  supports  a  whole  range  of 
promotional  activities  and  tailor-made  assistance  to  SMEs. 
ME  is  the  only  guarantee  institution  in  Malta  issuing  SME 
Loan  Guarantees.  It  co-operates  with  all  major  banks  in 
Malta. 

Guarantees issued by ME under the three product categories 
–  SME  loan  guarantee  scheme,  loan  guarantee  scheme  for 
new entrepreneurs and loan guarantee scheme for crafts and 
artisans - are eligible under the Facility, as long as they refer 
to  loans  granted  by  banks  to  SMEs  with  up  to  100 
employees  for  i)  investment  financing  and  ii)  with  a 
minimum maturity of 3 years.  

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee  window  which  enables  ME  to  increase  its 
guarantee activity.  

The  availability  period  for  the  intermediary  will  end  on 
31.12.06. 

BBMKB  is  a  public  guarantee  scheme,  operated  on  a 
national  basis  and  managed  by  the  Ministry  of  Economic 
Affairs  of  the  Netherlands  on  behalf  of  the  Dutch  state.  It 
already  had  an  agreement  with  the  EIF  under  the  Growth 
and Employment initiative. BBMKB offers  three  guarantee 
products:  standard  guarantees,  guarantees  for  start-ups  and 
special  guarantees  for  innovative  companies.  The  BBMKB 
scheme  is  an  established  national  guarantee  scheme  for  the 
support  of  SMEs  and  has  a  diversified  portfolio  with 
national  coverage.  The  guarantees  are  provided  with  a 
particular attention to the job creation potential.  

Eligible  SMEs  are  those  with  up  to  100  employees.  Loans 
between  EUR  70,000  and  EUR  700,000  and  a  maturity  of 
less than 6 years are eligible for cover. Start-ups are defined 
as  entrepreneurs  who  have  operated  in  a  business  for  less 
than  5  years.  Thanks  to  the  Facility  BBMKB  is  able  to 
increase the guarantee volumes. 

As of June 2005, 1,672 loans have been guaranteed and no 
losses have been reported.  

EN 

35 

   EN 

 
The  availability  period  of  the  intermediary  will  end  on 
the 
30.6.2007.  Both 
maximum 
in 
December 2005.  

the  counter-guarantee  cap  and 
increased 

volume  were 

portfolio 

Norway 

Innovation Norway 

Innovation  Norway  is  a  public  organisation  owned  by  the 
Ministry  of  Trade  and  Industry.  It  was  established  on 
1 January 2004 by merging four institutions with the aim to 
create an efficient and transparent company servicing SMEs. 
IN  is  based  in  Oslo  and  has  branches  in  all  Norwegian 
counties. IN provides loans, guarantees and grants.  

Eligible  borrowers  are  start-ups  and  small  companies  with 
growth  potential  and  established  small  and  innovative 
enterprises  that  plan  to  expand  and  present  a  higher  risk. 
establishment, 
Eligible 
reorganisation or development of a company, as well as the 
introduction  of  new  technology  and  the  implementation  of 
research  and  development  results.  Loans  have  maturities 
between 3 and 8 years. 

investments 

relate 

the 

to 

Cultura Bank  

Poland 

Bank BPH S.A. 

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee window that helps IN to increase its volumes for 
those risky SMEs.  

The  availability  period  for  the  intermediary  will  end  on 
31.12.2006. 

Cultura  Sparebank  is  a  savings  bank  that  provides  micro 
loans  for  sound  projects  that  have  a  positive  impact  on 
society and added value from a social, ecological or cultural 
point  of  view.  It  was  one  of  the  founding  members  of 
Microinvest  in  2003.  Both  formed  in  2005  a  cooperation. 
Since  then,  Cultura  Bank  provides  loans  on  behalf  of 
Microinvest that are in turn guaranteed by Microinvest. The 
latter offers mentoring services. 

The  cooperation  under  the  MAP  Micro-credit  Guarantee 
window allows the intermediary to expand its activity. 

The  availability  period  for  the  intermediary  will  end  on 
30.6.2007. 

BPH is part of the HVB banking group. It was established in 
December  2001.  It  has  a  nation-wide  network  of  over  460 
branches  and  it  ranks  third  in  Poland.  BPH  has  a  market 
share of 11% in the SME segment.  

Investment  loans  (standard  and  simplified)  as  well  as 
commercial vehicles financed under the “Auto Sezam” loan 
programme  with  a  minimum  maturity  of  three  years  and 

EN 

36 

   EN 

 
 
granted to SMEs with up to 100 employees are eligible. The 
Facility  provides  enhanced  access  to  finance  through 
reduced  collateral  requirements,  increased  financing  rates, 
etc. 

The bank currently has an agreement with the EIF under the 
Loan Guarantee window.  

The  availability  period  for  the  intermediary  will  end  on 
30.6.2007.  Taking  into  account  the  strong  utilisation  under 
the  Facility,  both  the  guarantee  cap  and  the  maximum 
portfolio volume were increased . 

Polfund  is  a  private  guarantee  fund  supporting  SMEs  that 
due to a lack of collateral do not have access to commercial 
bank financing. It started its activities at the end of 2001. It 
operates nation-wide and is open to all banks in Poland. So 
far,  guarantees  have  only  been  provided  to  its  shareholder 
BZ WBK and to the state-owned bank BGK.  

The  activity  was  limited  to  short  term  and  working  capital 
financing.  Under  the  MAP  Loan  Guarantee  window,  the 
maximum  guarantee  maturity  is  extended  to  7  years,  the 
guarantee rate is increased and fees are reduced.  

The availability period will end on 31.12.2006. 

Sociedade  de  Investimento  SA,  SPGM,  was  established  to 
set up a mutual guarantee scheme for SMEs in Portugal. It is 
a financial institution regulated by the Portuguese bank act. 
SPGM  manages  the  public  guarantee  fund,  FCGM,  that 
counter-guarantees the mutual guarantee societies, MGS, in 
Portugal. The EIF had an agreement with SPGM under the 
Growth and Employment initiative. All SMEs active in the 
and 
manufacturing, 
construction sector can apply for a guarantee. Only medium 
and long-term investment loans (minimum 3 years maturity) 
are eligible. 

commerce, 

tourism, 

services 

Polfund SA 

Portugal 

Sociedade de 
Investimento, 
(SPGM) 

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee  window,  which  provides  for  higher  guarantee 
rates. 

The  availability  period  for  the  intermediary  will  end  on 
31.12.06. 

BRD is a joint stock company and the majority shareholder 
is  Société  Générale  Group  which  holds  51%  of  the  shares. 
BRD  is  the  largest  private  financial  institution  in  the 
country.  It  provides  the  full  range  of  financial  services  to 
corporate clients and consumers. Particular attention is paid 

Romania 

BRD Groupe 
Société Générale 
(BRD) 

EN 

37 

   EN 

 
 
to  SMEs.  BRDintends  to  expand  in  this  segment  of  the 
market.  The  bank  has  a  nation-wide  network  of  179 
branches and agencies.  

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee window.  

Eligible borrowers are SMEs, including start-ups, with up to 
100  employees.  Loans  cover  investment  financing  with  a 
minimum maturity of 3 years. Thanks to the MAP, BRD has 
designed  a  specific  programme  with  reduced  collateral 
requirements.  Depending  on  the  quality  of  the  customer, 
loans with maturities of up to 10 years are offered.  

The guaranteed amounts were increased and the availability 
period was extended until 30.06.2007. 

Raiffeisen Bank SA (RB) is the result of the merger between 
the  former  Bank  Agricola  -  taken  over  by  Raiffeisen 
Zentralbank  Österreich  AG  (RZB)  in  April  2001  -  and 
Raiffeisenbank Romania, the corporate subsidiary of RZB in 
Romania.  Particular  attention  is  paid  to  SMEs  and  RB  has 
the  intention  to  expand  in  this  segment  of  the  market.  RB 
offers a wide  range of  lending products to SMEs including 
investment  loans,  working  capital  facilities,  overdrafts  and 
internal factoring. 

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee  window.  The  Facility  supports  a  new  RB 
programme specifically designed to match the objectives of 
the  Facility  (by  extending  loan  maturities,  accept  start-ups, 
lower  collateral  requirements  The  guaranteed  portfolio 
covers loans granted to SMEs with up to 100 employees for 
investment financing with a minimum maturity of 3 years.. 
Target SMEs include start-up companies.  

The  availability  period  for  the  intermediary  will  end  on 
30.6.2007. 

Tatra  Banka  AS  (TB)  was  established  in  1990  as  the  first 
privately  owned  bank  in  Slovakia.  The  Raiffeisen  group 
owns  86.4%.  TB  is  the  third  largest  bank  in  the  Slovak 
Republic. TB provides the full range of corporate and retail 
banking services. 

All  loans  granted  to  SMEs  with  up  to  100  employees  for 
investment  financing  with  a  minimum  maturity  of  3  years 
are eligible for cover. 

Raiffeisen Bank SA 
(RB) 

Slovakia 

Tatra Banka A.S. 

EN 

38 

   EN 

 
 
Slovenia 

Slovene Enterprise 
Fund (SEF) 

Spain 

CERSA 

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee  window.  Additionality  is  achieved  by  extended 
loan maturities, lower collateral requirements and increased 
volumes. 

The  availability  period  for  the  intermediary  will  end  on 
30.6.2007.  The  guarantee  cap  as  well  as  the  maximum 
portfolio amounts were increased in December 2005 to meet 
the strong. 

The Slovene Enterprise Fund (SEF) is a financial institution 
based  in  Maribor.  Established  in  2000,  it  is  the  legal 
successor  to  the  Small  Business  Development  Fund  of  the 
Republic of Slovenia, which was founded in 1991. It is fully 
owned by the government of the Republic of Slovenia. SEF 
is  the  only  public  financial  fund  promoting  investment 
projects  by  SMEs  in  Slovenia  and  the  sole  financial 
institution in Slovenia that grants direct loans to start-ups.  

Eligible borrowers are SMEs, including start-ups, with up to 
100  employees.  Thanks  to  MAP,  SEF  started  a  new 
guarantee  activity.  Guarantees  are  provided  for  investment 
loans  with  a  maturity  of  up  to  10  years.  The  maximum 
investment  amount  supported  is  capped  at  EUR  130,000, 
with  a  maximum  loan  amount  of  75%,  which  in  turn  is 
guaranteed by SEF at 50%.  

It  currently  has  an  agreement  with  the  EIF  under  the  Loan 
Guarantee window.  

The  availability  period  for  the  intermediary  will  end  on 
30.6.2007. 

Compañia  Española  de  Reafianziamiento  (Cersa)  was 
created  as  a  result  of  a  restructuring  of  Spain’s  national 
guarantee schemes. It became operational in 1994. The State 
holds  92%  of  its  capital,  68%  directly  and  24%  through 
Instituto de Crédito Oficial – ICO. Cersa counter-guarantees 
loans with a minimum maturity of three years. It already had 
an  agreement  with 
the  Growth  and 
Employment initiative.  

the  EIF  under 

It has an agreement with the EIF under the Loan Guarantee 
window.  CERSA  offers  counter-guarantees  and  guarantees 
for all medium and long-term loans, including loans granted 
by  the  Ministry  for  Science  and  Technology,  for  new 
investments and start-up financing with a maturity of at least 
3  years.  EIF’s  counter-guarantee  has  permitted  CERSA  to 
issue effective counter-guarantees with no loss cap. Eligible 
SMEs are those with up to 100 employees.  

EN 

39 

   EN 

 
Utilisation  is  constantly  strong  and  the  availability  period 
will end on 31.12.2006. The counter-guarantee cap and the 
maximum portfolio volume were extended in July 2005.  

Instituto de Crédito 
Oficial (ICO) 

Instituto  de  Crédito  Oficial  (ICO)  is  a  state-owned  credit 
institution  of  the  Ministry  of  Economy.  The  Micro-credit 
programme  which  was  established  thanks  to  the  Facility  is 
the only one operating at national level. .  

Sweden 

ALMI 
Företagspartner 

ICO has an agreement with the EIF under the Micro-credit 
Guarantee  window.  The  final  beneficiaries  are  financially 
excluded  people  who  want  to  start  an  independent  activity, 
i.e.  people  that  do  not  have  access  to  finance  through  the 
banking  system since  they cannot offer adequate  collateral. 
Only  companies  with  up  to  10  employees  are  eligible.  In 
most  cases,  however,  financial  beneficiaries  are  self-
employed  starters.  This  is  a  new  programme  that  was 
launched thanks to the MAP guarantee. 

The availability period ended on 31.12.05 and ICO decided 
not to further offer the programme. 

ALMI  Företagspartner  is  a  public  development  agency 
whose mission is to increase the number of start-ups and to 
support  the  growth  of  companies.  It  already  had  an 
agreement with the EIF under the Growth and Employment 
intitiative.  Under  the  Facility,  EIF  covers  different  lending 
programmes.  In  order  to  meet  the  high  demand  and  ensure 
on-going  support,  a  contract  under 
the  MAP  Loan 
Guarantee window was signed. 

ALMI  offers  long-term  financing  to  SMEs  that  lack 
sufficient  collateral,  but  have  growth  and  job  creation 
potential. ALMI mainly supports  micro enterprises  with up 
to 10 employees.  

Under the Facility, EIF covers two programmes, the” SME 
Loan  Programme”  and  the  Growth  Loan  Programme.  The 
SME  Loan  Programme 
is  covering  start-ups,  female 
entrepreneurs with less than 100 employees  at all stages of 
the  business  life,  young  entrepreneurs  and  SMEs  with 
growth  potential.  The  Growth  Loan  Programme  is  for 
growing  companies  with  a  business  life  of  more  than  3 
years. ALMI is able to increase the loan volumes thanks to 
the Facility. 

At the end of 2005, the cap amount as well as the maximum 
portfolio volume were increased, and the availability period 
was extended until 30.06.2007. 

EN 

40 

   EN 

 
 
Turkey 

Credit Guarantee 
Fund, KGF. 

UK 

The Prince's Trust 
and Prince's 
Scottish Youth 
Business Trust 

KGF  was  founded  as  a  joint  stock  company  under  private 
law in 1991 by a number of Turkish SME organisations; it 
became  operational  in  1994.  Its  mission  is  to  provide 
guarantees to existing SMEs and start-ups that are unable to 
obtain sufficient financing due to their insufficient collateral 
or operational history. KGF operates nation-wide through its 
headquarters in Ankara and its branch office in Istanbul.  

The  portfolio  covers  guarantees  provided  for  investment 
loans  with  a  minimum  maturity  of  36  months,  granted  to 
SMEs with up to 100 employees. Thanks to MAP, guarantee 
volumes can be increased and guarantee fees are lowered. 

KGF  currently  has  an  agreement  with  the  EIF  under  the 
Loan Guarantee window.  

The  availability  period  for  the  intermediary  will  end  on 
31.12.2006. 

The  Prince's  Trust  and  Prince's  Scottish  Youth  Business 
Trust  is  a  private  charity  organisation  in  the  UK.  The 
Prince’s  Trust  (although  not  Prince's  Scottish  Youth 
Business  Trust  at  the  time)  already  had  an  agreement  with 
the  EIF  under  the  Growth  and  Employment  initiative.  It 
benefits  from  a  direct  guarantee  by  the  EIF  for  its  micro-
lending  programme  and  is  therefore  able  to  provide 
significantly  higher  volumes  of  micro-loans.  It  offers  a 
variety  of  programmes 
and 
underprivileged people.  

to  young 

addressed 

The start-up scheme supports young people, between 18 and 
30,  in setting up  their own business  through  a  combination 
of  soft  loans,  grants  and  mentoring.  The  cap  amount  was 
increased  in  2004  and  the  availability  period  was  extended 
by two years and will end on 31.12.2006. 

EN 

41 

   EN 

 
Annex 4: SME Guarantee Facility – Beneficiary SMEs 

Tables  1  to  3  in  this  Annex  include  data  as  at  30  June  2005.  They  provide  detailed 
information  on  beneficiary  SMEs  by  country,  size  of  the  enterprise  and  by  year  of 
establishment. 

The  breakdown  of  sectors  of  the  SME  beneficiaries  under  the  three  windows  as  at 
31.12.2005 is shown in figures 1 to 3. 

Table 1 
window, the Micro-credit window and the Equity window as at 30.06.2005. 

Breakdown  by  country  of  beneficiary  SMEs  for  the  Loan  Guarantee 

Country 

Number of 
beneficiary SMEs 

Average loan amount 
(EUR 000) 

Austria 

Belgium 

Bulgaria 

Czech republic 

Germany 

Denmark 

Estonia 

Spain 

Finland 

France 

Greece 

Hungary 

Ireland 

Italy 

Lithuania 

Latvia 

Malta 

2,145

1,036

60

788

8,808

422

116

11,844

1,709

24,333

107

35

47

43,328

183

65

6

136,373.7 

31,431.4 

338,092.2 

168,720.2 

21,319.0 

176,846.4 

180,050.1 

93,642.6 

209,244.2 

32,179.2 

48,704.7 

194,464.2 

10,481.6 

72,628.2 

87,704.3 

108,657.7 

92,592.6 

The Netherlands 

1,633

154,788.7 

EN 

42 

   EN 

 
Norway 

Poland 

Portugal 

Romania 

Sweden 

Slovenija 

Slovak Republic 

Turkey 

United Kingdom 

Total 

5

547

75

411

4,393

20

140

30

8,802

111,088

200,871.7 

41,129.3 

270,059.9 

92,726.0 

46,740.1 

118,008.4 

207,606.5 

146,606.6 

2,704.3 

61,620.7 

Table 2 
window, the Micro-credit window and the Equity window 

Beneficiary  SMEs  per  size  class  as  at  30.06.05  for  the  Loan  Guarantee 

0-5 

6-10 

11-20 

21-50 

51-100 

Austria 

Belgium 

Bulgaria 

1,703.00 

182.00 

132.00 

100.00 

28.00 

2,145.00 

1,019.00 

12.00  

3.00  

2.00  

- 

1,036.00 

27.00 

7.00 

12.00 

10.00 

4.00 

60.00 

Czech republic  404.00 

97.00 

107.00 

115.00 

65.00 

788.00 

Germany 

8,473.00 

265.00 

56.00 

14.00 

- 

8,808.00 

Denmark 

328.00 

44.00 

28.00 

19.00 

55.00 

16.00 

24.00 

15.00 

3.00 

6.00 

422.00 

116.00 

Estonia 

Spain 

Finland 

France 

Greece 

Hungary 

Ireland 

Italy 

Latvia 

Malta 

The 
Netherlands 

9,550.00  1,097.00

620.00 

437.00 

140.00 

11,844.00 

1,265.00 

195.00 

132.00 

95.00 

22.00 

1,709.00 

22,067.00  1,667.00

492.00 

96.00 

11.00 

24,333.00 

85.00 

16.00 

11.00 

46.00 

8.00 

1.00 

4.0 

6.00 

- 

2.00 

7.00 

- 

- 

107.00 

3.00 

- 

35.00 

47.00 

35,316.00  3,474.00 2,563.00 1,438.00

537.00 

43,328.00 

Lithuania 

60.00 

43.00 

36.00 

40.00 

40.00 

1.00 

9.00 

1.00 

9.00 

3.00 

5.00 

1.00 

4.00 

2.00 

- 

183.00 

65.00 

6.00 

983.00 

280.00 

199.00 

139.00 

32.00 

1,633.00 

EN 

43 

   EN 

 
 
 
Norway 

Poland 

5.00 

- 

- 

- 

- 

5.00 

292.00 

92.00 

36.00 

62.00 

15.00 

547.00 

Portugal 

12.00 

14.00 

14.00 

21.00 

14.00 

75.00 

Romania 

135.00 

69.00 

76.00 

84.00 

47.00 

411.00 

Sweden 

3,514.00 

413.00 

283.00 

148.00 

35.00 

4,393.00 

Slovenija 

14.00 

2.00 

2.00 

2.00 

- 

20.00 

Slovak Republic

36.00 

26.00 

33.00 

31.00 

14.00 

140.00 

Turkey 

10.00 

7.00 

4.00 

8.00 

1.00 

30.00 

United Kingdom 3,799.00 

3.00 

- 

- 

- 

3,802.00 

TOTAL 

94,250.00  8,040.00 4,924.00 2,891.00

983,00  111,088.00

Percentage 

84.8% 

7.2%

4.4%

2.6%

0.9% 

EN 

44 

   EN 

 
Table 3: Breakdown of beneficiary SMEs by year of establishment as at 30.06.05 for the 
Loan Guarantee window, the Micro-credit window and the Equity window 

2005 

2004 

2003 

2002 

2001 

<2001 

Not 
available

TOTAL 

Austria  

Belgium 

Bulgaria 

129.00 

457.00 

556.00 

294.00 

136.00 

535.00 

38.00 

2,145.00 

198.00 

536.00 

279.00 

23.00 

- 

- 

- 

1,036.00 

2.00 

9.00 

15.00 

5.00 

29.00 

60.00 

Czech Republic  17.00 

66.00 

49.00 

34.00 

40.00 

582.00 

- 

788.00 

Germany 

Denmark 

Estonia 

Spain 

Finland 

France 

Greece 

Hungary 

Ireland 

Italy 

Lithuania 

Latvia 

Malta 

554.00 

680.00 

1,183.00  641.00 

175.00 

187.00 

5,388.00  8,808.00 

55.00 

140.00 

114.00 

35.00 

15.00 

63.00 

3.00 

28.00 

21.00 

11.00 

6.00 

47.00 

- 

- 

422.00 

116.00  

635.00 

2,171.00  2,240.00  686.00 

525.00 

5,587.00 

- 

11,844.00 

85.00 

315.00 

324.00 

166.00 

76.00 

742.00 

1.00 

1,709.00 

999.00 

5,686.00  4,030.00  1,575.00  1,141.00  10,874.00  28.00 

24,333.00 

32.00 

31.00 

5.00 

6.00 

3.00 

30.00 

- 

107.00 

2.00 

2.00 

1.00 

30.00 

24.00 

18.00 

2.00 

1.00 

2.00 

- 

- 

35.00 

47.00 

1,050.00  5,193.00  5,390.00  3,273.00  2,258.00  26,160.00  4.00 

43,328.00 

4.00 

25.00 

16.00 

14.00 

11.00 

113.00  

10.00  

22.00  

8.00  

3.00  

3.00  

19.00  

1.00  

5.00  

- 

- 

- 

183.00 

65.00 

6.00 

The Netherlands  323.00  

709.00  

177.00  

69.00  

72.00  

280.00  

3.00  

1,633.00  

Norway 

Poland 

Portugal 

Romania 

EN 

1.00 

4.00  

- 

5.00 

1.00 

32.00 

39.00  

43.00  

48.00 

339.00 

45.00  

547.00 

3.00 

3.00  

3.00  

2.00 

64.00  

7.00 

23.00 

48.00 

27.00 

39.00 

267.00  

- 

- 

75.00 

411.00 

45 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sweden 

Slovenija 

445.00  1,114.00  1,029.00 

392.00 

158.00  1,255.00 

2.00 

4.00 

14.00 

-

-

4,393.00 

20.00 

Slovak Republic 

3.00 

14.00 

11.00 

7.00 

11.00 

93.00 

1.00 

140.00 

Turkey 

5.00 

1.00 

1.00

23.00 

-

30.00

United Kingdom 

1,870.00  3,271.00  3,553.00 

2.00 

- 

106.00 

8,802.00 

TOTAL 

6,444.00  20,544.00  19,094.00  7,322.00  4,728.00  47,342.00 

 5,614.00  111,088.00 

Percentage 

5.8% 

18.5%

17.2%

6.6%

4.3%

42.6% 

5.1%

Figure 1 
window as at 31.12.2005 

Breakdown of sectors of the SME beneficiaries under the Loan Guarantee 

Community 
services; 8%

Private; 3%

Agriculture; 2%

Manufacturing; 
27%

Education, health; 
2%

Real estate; 7%

Transport; 7%

Hotels; 6%

Trade; 18%

Construction; 
20%

EN 

46 

   EN 

 
 
 
 
 
Figure 2 

Breakdown of sectors of the SME beneficiaries under the Micro-credit 

window as at 31.12.2005 

Private
1,5%

Undefined
6,2%

Agriculture
2,4%

Manufacturing
9,2%

Construction
9,1%

Community 
service
15,7%

Edcuation, health
2,6%

Real estate
12,8%

Transport
2,1%

Hotels and 
restaurants 
including catering
5,1%

Trade
33,2%

Figure 3 
at 31.12.2005 

Breakdown of sectors of the SME beneficiaries under the Equity window as 

Community 
services
0,6%

Unknown
1,3%

Manufacturing
21,5%

Electrical, gas 
and water supply
0,6%

Construction
2,5%

Education, health
62,0%

Trade
8,9%

Real estate
2,5%

EN 

47 

   EN 

 
  
 
 
 
Annex 5: SME Guarantee Facility - Analysis of Defaulted Loans, situation as at 
30 june 2005 

Total of calls received, payments made and recoveries 

The total of calls received is EUR 13.8 million (see table 1); the breakdown by Financial 
Intermediary is provided in table 2. 

The discrepancies between calls received and payments made (see table 2) result from the 
time lag between the calls received by EIF and the date of their payment (up to two months 
thereafter).  

Table 1: Calls received, payments made and recoveries 

Amount (EUR) 

Guarantees - number (#) 

Calls received 

13,816,656.21 

Payments made 

12,168,406.44 

Recoveries received 

-1,976,043.39 

Payments 
excluding recoveries 

made

14,144,449.83 

3403 

3171 

905 

3171 

EN 

48 

   EN 

 
 
Table 2: 
the amounts recovered.  

Amount  of  the  calls  received  and  net  payments  made,  taking  into  account 

Financial  
Intermediary  

ALMI 
Artigiancredit 

Lombardia 
ADIE 
ATI-Alleanza 

Garanzia 

ATI-Artigiancredit 

di 

Piemonte 
Romagna – Lombardia 

Emilia 

– 

Austria 

Wirtschaftsservice 
GmbH 

 CERSA 
Encouragement 
Ad 

Bank 

de  Credito 

Finnvera 
Fonds de Participation 
Instituto 
Oficial 
Kreditanstalt 
Wiederaufbau 
Kreditanstalt 
Wiederaufbau 

für 

für 

Socama 
Sofaris 
The  Danish  Investment 
Fund 
The Prince’s Trust 

TOTAL 

Window 

Loan Guarantee 
Facility 
Loan Guarantee 
Facility 
Micro Credit 
Loan Guarantee 
Facility 
Loan Guarantee 
Facility 

Loan Guarantee 
Facility 

Loan Guarantee 
Facility 
Loan Guarantee 
Facility 
Loan Guarantee 
Facility 
Micro Credit 
Micro Credit 

Micro Credit 

Loan Guarantee 
Facility 
Loan Guarantee 
Facility 
Equity 
Loan Guarantee 
Facility 
Micro Credit 

Calls 
Received 
(EUR) 

Payments 
made  
(EUR, 
excluding 
recoveries) 

Amounts  
Recovered 
(EUR) 

1,730,405.07 

1,959,705.08 

-176,137.38 

36,896.20 
499,907.95 

26,150.52 
393,517.89 

-60 
-21,991.75 

91,915.27 

91,915.2 

77,619.22 

75,945.84 

-2,886.83 

303,176.50 

303,539.63 

-363.13 

56,358.52 

100.15 

111,070.69 

126,731.28 

-15,660.59 

249,238.77 
206,807.79 

251,649.55 
113,107.21 

-48,607.03 

1,769,677.04 

1,780,065.83 

-6,499.63 

2,944,746.32 

2,003,296.25 

-107,662.63 

28,692.43 

128,486.26 
396,002.80 

11,105.12 
187,750.00 

379,077.15 
4,806,578.24 

379,937.82 
6,435,932.39 

-1,596,174.42 

13,816,656.21 

14,144,449.83 

-1,976,043.39 

EN 

49 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
Annex 6: ETF Start-up  

Table 1: Information about Venture Capital funds that have contractual agreements with 
the EIF 

Name

Country of  
headquarters

Geographical 
orientation

Targeted 
s tage

S ector focus

Duration 
(years )

Fund size
(EUR million)

Current

Target

EMBL 
Technology Fund

Germany

Germany

Seed

T-S ource

France

France

Seed

VIVES

Belgium

Belgium

Seed

Biotechnology, 
medical / health 
related
Communications , 
computer related, 
other electronic 
related
Biotechnology, 
communications, 
computer related

Eden One LP

UK

UK

Pontis
Partners  I

Venture

A us tria

A us tria

Seed

Communications , 
computer related, 
other electronic 
related
Start-up Biotechnology, 

communications, 
computer related, 
indus trial 
automation, 
medical/health 
related

10+2

26.2

26.2

10+2

38.3

38.3

12+2

15

15

10+3

67.6

67.6

10+2

30.4

30.4

Cres cent Capital
Talde Capital II

UK
Spain

UK
Spain

Generalis t Generalis t
Expansion Generalis t, 

10+2
10+2

32.8
54.5

32.8
60

Biotechnology, 
Communications , 
Computer related

Adara Ventures

Spain

Spain

New Tech VCF II

Luxembourg M ulti-country

Expansion Communications , 
Computer related

10+2

40.7

40.7

Start-up Communications , 
Computer related

10+2

38.0
[1]

38

TOTAL

343.5

349.0

[1] Situation as at 31/12/2005. Following a second closing (08/03/2006) the current fund siz e is EUR 83.9m .

Table 2: 
agreements with the EIF. 

Short  description  of  Venture  Capital 

funds 

that  have  contractual 

European Molecular Biology Laboratory Technology Fund (EMBLTF) 

EMBLTF  is  a  German  Venture  Capital  fund  sponsored  by  the  European  Biology 
Laboratory,  a  research  institute  in  molecular  biology.  It  focuses  on  seed  and  start-up 
investments in life science and related enabling technologies. 

The  fund’s  target  investment  area  covers  the  EMBL  Member  States  (the  whole  of  EU 
excluding  Luxembourg  and  Ireland,  together  with  Israel,  Norway  and  Switzerland). 

EN 

50 

   EN 

 
  
 
Special  emphasis  is  given  to  investments  in  the  region  of  Heidelberg.  The  fund’s 
headquarters are situated in Heidelberg, Germany. 

__________________________________________________________________________  

T-Source 

T-Source is a French seed fund focusing on investments in communication technologies.  

The fund’s target investment area is primarily France, with a possibility of investing up to 
20% of the fund in other EU countries. Its headquarters are situated in Versailles, France. 

__________________________________________________________________________  

VIVES 

VIVES is a Belgian seed capital fund focusing exclusively on companies in their seed and 
start-up phase. Its sector focus is on ICT, biotechnology, engineering and nano-technology. 

The  fund’s  target  investment  area  is  predominantly  Belgium  and  selectively  the 
neighbouring countries (the Netherlands,  France,  Germany  and UK).  Its headquarters are 
situated in Louvain-la-Neuve, Belgium. 

__________________________________________________________________________  

Eden One LP 

Eden One LP is a British venture capital fund focusing on seed and early stage investments 
in  the  technology  area,  primarily  applications  and  systems  software  for  next  generation 
network  infrastructure,  digital  media  tools  and  infrastructure,  telemetry  services  over 
mobile networks and other applications of mobile communications. 

The Fund’s target investment areas are the UK and Ireland. Its headquarters are situated in 
Bath, UK. 

__________________________________________________________________________  

Pontis Venture Partners I Beteiligungs-Invest AG (PVP I) 

PVP I is a spin-out from the venture arm of the “Land Niederösterreich”. It focuses mainly 
on start-up and to a lesser extent on expansion investments in ICT and Life Sciences. 

The fund’s target investment area is mainly the East-Austrian market and selectively in the 
neighbouring  regions  of  Hungary,  Slovakia  and  Czech  Republic.  Its  headquarters  are 
situated in Vienna, Austria. 

Crescent Capital II L.P. 

Crescent Capital II  L.P.  is  a  British  venture  capital fund with  its headquarters in Belfast, 
Northern Ireland. It focuses predominantly on early stage companies.  

EN 

51 

   EN 

 
The primary sector focus is on technology-related sectors (ICT and life sciences). Crescent 
Capital II L.P. is a regional fund focusing on Northern Ireland.  

__________________________________________________________________________  

Talde Capital II FCR 

Talde Capital II FCR is a Spanish venture capital fund with headquarters in Bilbao. 

It  is  a  multi-stage  vehicle  including  seed  and  start-up  companies  in  its  investment 
programme.  The  fund  is  a  generalist  with  a  balanced  portfolio  consisting  of  innovative 
SMEs operating in both traditional industry and technology related sectors. 

The geographical focus of Talde II is mainly on Spain and to a lesser extent on Portugal. 
Special attention is given to Spanish objective 1 regions. 

__________________________________________________________________________  

Adara Ventures 

Adara Ventures is a Spanish venture capital fund with headquarters in Madrid. It is a fund 
primarily  focusing  on  the  ICT  sectors,  and  more  specifically  (i)  software,  (ii) 
communication & computer systems and (iii) professional technology services sub-sectors. 
It includes primarily early-stage companies in its investment programme. 

The main geographical focus of Adara Ventures is Spain. Other markets are considered on 
a more selective basis. 

__________________________________________________________________________  

New Tech Venture Capital Fund II (NTVC II) 

NTVC  II  is  a  venture  capital  fund  with  headquarters  in  Luxembourg.  It  is  primarily 
focusing on the ICT sectors, in particular network management systems, wireless, services 
and software. It invests mainly in the pre (seed) and start-up rounds.  

The  geographical  focus  of  NTVC  II  is  the  EU  with  a  small  percentage  of  investments 
outside the participating countries.  

EN 

52 

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Annex 7: Seed Capital Action 

Table 1: 

Information about EIF approvals under the Seed Capital Action. 

Fund 

Country 

Requested 
SCA 
amount 

Purpose 

EMBLTF* 

Germany 

200,000 

Long-term  recruitment  of  two  junior  investment 
professionals 

Pentech 
Ventures* 

UK 

100,000 

Long-term  recruitment  of  one  junior  investment 
manager 

Bullnet 

Spain 

200,000 

Investment  team  to  be  strengthened  by  a  long-term 
recruitment of two additional investment managers, 

TecNet Equity  

Austria 

100,000 

Long-term  recruitment  of  one  junior  investment 
manager 

Vives 

Belgium 

200,000 

Long-term  recruitment  of  two  junior  investment 
professionals 

TOTAL 

800,000 

* Signed in 2003 

EN 

53 

   EN 

 
 
 
Annex 8: Financial Statements 

SME Guarantee Facility 

ETF Start-up Facility 

Seed Capital Action 

Financial Statements as at 31 December 2005 

(expressed in euro) 

EN 

54 

   EN 

 
Annex 9: Joint European Venture (JEV) programme 

The JEV  programme supports  the creation of transnational partnerships established  by at 
least two SMEs from different states within the European Economic Area. By the end of 
2005,  a  cumulative  total  of  323  applications  had  been  received,  230  agreements  signed, 
EUR 19.8 million allocated to projects and EUR 3.5 million paid out. 

On  21  July  2004,  by  a  decision  of  the  European  Parliament  and  of  the  Council8,  it  was 
decided that the JEV programme should be phased out. It was closed to new applications 
on 29 December 2004. It is anticipated that it will take approximately two years to close all 
the  ongoing  JEV  projects.  This  decision  also  contained  a  minor  change  to  the  eligibility 
criteria of the ETF Start-up scheme to improve access for companies in specific high tech 
sectors. 

8 

Decision N° 593/2004/EC published in OJ L 268 of 16.8.04 

EN 

55 

   EN