8.4 million euros for Romanian microenterprises
7,500 Romanian microenterprises will be able to get fresh investments, while local small-entrepreneurs and small-scale farmers are about to improve their access to finance. This is possible thanks to the Invest EU 8.4 million Euros (42 million RON, Romanian new leu) guarantee that will support 100 million euros in new loans.
Bucharest announced that the financial partners of this operation are the European Investment Fund (EIF) and BT Mic, the country's largest microfinance institution. The first one supports innovation, research and development, entrepreneurship, growth, and employment in European SMEs; at the same time, BT Microfinanțare, part of Banca Transilvania Financial Group, addresses companies with an annual turnover of up to 1 million RON . BT Mic ensures the access to financing: over 70% of the customers obtained their first business loan via BT Mic.
“With economic pressure on the rise, it is always the smallest that are hardest hit and most in need of support. That is why this microfinance transaction is both relevant and timely. The EIF is proud to be partnering once more with BT Mic to channel EU resources in the direction of micro-entrepreneurs so that they are better positioned to pursue their aspirations for growth”, commented Hubert Cottigni, Director of the European Investment Fund.
A broader context: the Invest EU
The InvestEU programme provides the European Union with long-term financing by mobilising significant public and private funds to support a sustainable recovery. Investments are generated in line with key EU priorities, such as the Green Deal and the Digital transition. The InvestEU programme brings together financial tools to support investment by making project financing simpler, more efficient and flexible. The programme, which builds on the success of the previous Investment Plan for Europe has nowadays 3 pillars:
- the InvestEU Fund (€372 billion of public and private investment through an EU budget guarantee of €26.2 billion);
- the InvestEU Advisory Hub (technical support and assistance including capacity building to project developers and entities);
- the InvestEU Portal (platform for investors and project promoters).
The InvestEU Fund is implemented via various financial partners, particularly the European Investments Bank. They invest in projects using the European Union's budget guarantee of € 26.2 billion to mobilise at least € 372 billion in additional investments.
Who can apply for financing and how?
The eligible final recipients can be natural or legal persons established in an EU country or in a Third Eligible Country, including:
- Private entities (special-purpose vehicles or project companies), large corporates, (small) midcap companies and SMEs;
- Public sector entities (territorial or not) and public-sector type entities;
- Mixed entities - such as public–private partnership (PPPs) and private companies with a public purpose;
- Non-for-profit organisations.
Project promoters should apply directly to implementing partners who will offer tailor-made financing solutions based on the financial products supported by the EU guarantee.