The programme „Innovfin - EU Finance for Innovators” consists of a variety of products, such as quarantees for lease brokers granting credits to SME΄s or direct loans to enterprises, which all facilitate promotion of small or bigger projects in the area of research and innovation in EU member countries or Horizon 2020 Associate countries in period 2014 - 2020.
Based upon this programe, European Investment Bank (EIB) grants credits to medium and large enterprises, or quarantees to banks lending them financial resources. European Investment Fund (EIF) provides quarantees to banks granting credits to SME΄s, and also invests into the risk capital funds, financial resources of which are to be distributed to start-up and fast-growing companies.
Backed by funds set aside under Horizon 2020 and by the EIB Group, InnovFin financial products support research and innovation activities, which by nature are riskier and harder to assess than traditional investments, and therefore often face difficulties in accessing finance. All are demand-driven instruments, with no prior allocations between sectors, countries or regions. These debt instruments will be complemented in the near future by a suite of equity instruments managed by the EIF. The sum of €2,7 mld, from Horizon 2020 total budget of €80 mld, is to be distributed to these particular Instruments.