The European Investment Fund, which is managing the facility, signed with the Spanish bank Bankinter the agreement which supports up to €200 million of lending over the next two years to innovative companies in the country. It provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5 million, in order to improve access to loan finance for innovative small and medium-sized enterprises and small midcaps (up to 499 employees).

The "InnovFin SME Guarantee" is one of the financial instruments launched by the EU and the European Investment Bank Group (IP/14/670) to support innovation under Horizon 2020, the EU's Framework Programme for Research and Innovation.

European Commissioner for Research, Science and Innovation Carlos Moedas said: “With this signature we have started to deliver our promise to stimulate private investment for sustainable growth, job creation and a more competitive Europe. I am convinced that this agreement is a first of many that will directly help SMEs across the EU to finance innovation.”

Bankinter is the first bank in Europe to offer InnovFin SME Guarantee-backed loans with other financial institutions expected to follow.