By adopting eco-friendly and digital solutions across production, operations, administration, marketing, and sales, businesses can reduce their environmental impact while enhancing and market appeal. Embrace these efficiency strategies to position your company at the forefront of the green economy. Embrace these strategies to position your company at the forefront of the green economy.
OUTBOUND LOGISTICS
Activities involved in converting the inputs into finished products and services. This includes manufacturing, assembling, packaging and testing.
Publicly backed loans and guarantees are government-backed financial instruments designed to help businesses, especially SMEs and startups, access funding with lower risk and better terms than traditional commercial loans. These programs aim to stimulate economic growth, innovation and job creation by reducing financial barriers for companies that may struggle to secure private financing.
Unlike conventional bank loans, public loans are often offered at lower interest rates, with longer repayment periods and more flexible conditions. Public guarantees, on the other hand, act as a safety net for lenders, ensuring that part of the loan is covered by the government or a public financial institution in case of default. This reduces the lender's risk, making it easier for businesses to obtain financing. By leveraging publicly backed loans and guarantees, businesses can secure affordable funding, reduce financial risk and drive long-term growth in a competitive market.
How Public Loans & Guarantees Benefit SMEs?
Government-backed loans provide easier access to financing for businesses with limited credit history or collateral, enabling them to secure the funds they need. These loans often come with lower interest rates and more favourable terms, making repayment more manageable. They also encourage innovation and expansion by supporting investments in research and development, technology adoption and scaling operations. Additionally, during economic downturns, such loans offer crucial support to help businesses remain stable and resilient.
Where to Find Publicly Backed Loans & Guarantees?
Public funding programs are often managed by national and regional governments, development banks and EU institutions. Some of the key sources include: • European Investment Fund (EIF) – Specializes in guarantees and equity support for SMEs, often working through local partner banks. • European Investment Bank (EIB) – Provides large-scale lending, but typically not directly to SMEs—usually through intermediaries (banks, funds). • National Development Banks – Each country has its own institutions offering subsidized loans and guarantees. • EU Programs (such as InvestEU) – Focuses on sustainable and innovative business investments.
How to Access Publicly Backed Loans & Guarantees?
SMEs should explore country-specific programs by consulting national and regional development banks and consider applying for EU-backed loans and guarantees through partner banks and financial institutions. Reaching out to local chambers of commerce or business support organizations can also provide valuable guidance. These programs help SMEs access affordable financing, reduce lending risks and support long-term business growth.
European Investment Fund (EIF) – Loan Guarantee Programs
The EIF provides guarantees and risk-sharing instruments to financial intermediaries, such as banks and investment funds, to encourage lending to SMEs. Through programs like COSME Loan Guarantee Facility and InvestEU, SMEs can access low-interest loans with reduced collateral requirements by applying through EIF’s partner banks in their respective countries.
The EIB provides direct and indirect financing to SMEs through guaranteed loan schemes, venture debt, and risk-sharing mechanisms. Businesses can access long-term, low-cost loans for investments in innovation, sustainability, and expansion by applying via local banking partners.
InnovFin is an EU-backed loan guarantee program supporting SMEs engaged in research, development, and innovation. It provides debt financing and credit enhancement solutions, helping businesses secure funding for high-risk innovation projects through local financial institutions.
The SME Initiative combines funding from the EU, EIF, and EIB to provide risk-sharing guarantees for financial institutions, encouraging them to lend to SMEs. It offers enhanced access to finance, reduced interest rates, and lower collateral requirements for eligible businesses in participating EU member states.
Finnvera is Finland’s official state-owned financing company, providing loans, guarantees and venture capital to startups and SMEs. The institution offers export credit guarantees, growth loans, and special financing for innovation and internationalization. Businesses with high-risk profiles or limited collateral can benefit from state-backed guarantees, making it easier to secure bank loans.
