Loans for businesses through EU Programmes

No matter the size of your company or the sector of action EU funding is available. If you are an entrepreneur, a start-up owner, the founder of micro-companies or the leader of an SME or large business, EU funding can be a great opportunity to take the next step towards innovation.

The financing opportunities available cover a wide range of possibilities. You could go for a business loan, microfinancing, a guarantee or venture capital. It is worth noting that every year, the EU supports more than 200.000 businesses. Your business could be the next one.

Getting the Funding

To get the European funding for your business, you must first get the approval of a local financing institution. These institutions include banks, venture capitalists and angel investors. It is also thanks to an EU initiative and supports that, these local financial institutions can also provide additional financing to businesses.

There are some specific conditions that the financing will need to meet including the amount of the financing, the duration of the financing project, the interest rates and the fees. These conditions are usually determined by financial institutions. There are over 1000 different types of financial institutions and based on your business type and financing needs, you can contact a great number of them to learn more about these conditions.

Getting your Feedback

There is always the possibility that you will not be considered eligible for EU financing from financial institutions. This happens very often when one applies for a bank loan. The difference between this kind of financing and bank loans is the fact that in this case, you can request feedback from the institution on their credit decision.

That feedback will help you fully understand your financial position and improve your future chances of getting funded. Legally you are covered by Article 431 of the EU Capital Requirements Regulation.

EU Funding Programmes for Business

Here is a list of all the EU funding programmes that provide financing for a business:

COSME Programme: COSME provides guarantees to small and medium-sized enterprises for loans mainly up to 150.000 EUR and equity for the growth and expansion stage

InnovFin Programme under Horizon 2020: Innovfin provides loans and guarantees to innovative businesses, financing of research and development projects as well as equity for the early and start-up phase.

Under the InnovFin programme you can find the EIC Accelerator (SME Instrument) that offers funding and coaching support to innovative SMEs.

Creative Europe: This programme offers loans to small and medium-sized enterprises in the cultural and creative sectors.

Programme for Employment and Social Innovation (EaSI): it offers microloans to micro-enterprises up to 25.000 EUR. It also offers the same amount of financing to vulnerable persons who wish to set up or develop their own micro-company. Lastly, it offers investments up to 500.000 EUR to social enterprises

European Structural and Investment Funds (ESI funds): this action offers loans, guarantees, business grants and equity financing. Support from this programme is provided from multi-annual programmes co-financed by the EU.

European Investment Bank and European Investment Fund: an action that offers business loans, microfinancing, guarantees and venture capital to businesses!

Perhaps one of the most notable actions is the COSME Loan Guarantee Facility (LGF). It provides support for the financing of digital transformation projects by SMEs in all sectors of the economy. The current digitalisation level of each company does not matter.

EU loans is one way to fund your business. Another one is to take part in EU funding projects. Funding your business with the help of the European Union can help you take the next step towards innovation. Find all the potential funding opportunities for your business. Use the Eucalls database to learn more about those programmes, their requirements and how you can become a part of them.