SMEs will be able to access, at lower interest rates, loans to finance investments for up to ten years, while loans for working capital can be granted for up to three years, the bank said in a press release.
The small enterprises can borrow maximum EUR1 million, out of which half would be guaranteed via JEREMIE program, while the guarantee from the EIF is cost-free.
This is the third agreement between ProCredit Bank and EIF, following another two signed in November 2013.
The JEREMIE initiative developed in cooperation with the European Commission allows member states to use part of their EU structural funds to finance SMEs. The program targets to ease SMEs’ access to financing.