SME Finance secures €40M to support innovative businesses in the Netherlands and beyond
Growth financier SME Finance announced their strategic partnership with European Investment Fund (EIF), providing an additional €40M in funding opportunities for small and medium sized businesses in the Netherlands, Baltic States, and Finland. This collaboration is part of the InvestEU programme and aims to stimulate the growth of young companies focused on innovation, sustainability, and digitisation.
Funding innovation of all shapes and sizes
According to Techleap’s State of Dutch Tech 2023 report, one of the greatest challenges faced by the startup ecosystem in the Netherlands is the lack of access to capital, especially in the small business sector. In order to remain competitive, diverse funding options are needed to stimulate the growth of small and medium sized companies, which often serve as hubs for innovation, digitisation, and job creation.
SME Finance is a Lithuanian-founded alternative financing platform that uses data-driven assessment to provide a wide range of funding options specifically designed to meet the needs of small businesses. In June of this year, they announced their expansion to the Netherlands to improve access to capital for the Dutch SME market, which is often overlooked by traditional financing. This strategic move was driven by the concentration of innovative and sustainability-focused SMEs in the region and the Netherlands’ status as one of the world’s most competitive economies according to IMD’s World Competitiveness Ranking.
€40M in financing to help stimulate growth
With the recent announcement of their strategic partnership with the European Investment Fund (EIF), SME Finance has secured an additional €40M in lending opportunities for SMEs in the Netherlands, Finland, and the Baltic States. Through this partnership, which falls under the InvestEU programme, SME Finance and EIF are set to offer loans to targeted businesses backed by a loan guarantee of up to 80%. These funds will play a crucial role in fostering growth by facilitating innovation, sustainability, and digitisation projects.
In addition, micro-financing opportunities of up to €50,000 will be extended to very small enterprises with fewer than 10 employees and annual revenues not exceeding €2 million.The ultimate goal is to support a diverse array of businesses and stimulate their development.
