InnovFin SME Guarantee Facility
The Bank of Cyprus and the European Investment Fund (EIF) have signed an agreement for the InnovFin SME Guarantee Facility. Under this agreement, the EIF provides guarantees on €10 million financing on favourable terms to innovative businesses, with an emphasis on start-up companies which allow financing without using tangible assets as collateral.
The scheme aims to support the cost of activities on research and innovation such as investment in assets and working capital.
Companies which are established, registered and operating in Cyprus
SMEs employing up to 249 persons with an annual turnover not exceeding €50million or an annual balance sheet (based on financial statements) not exceeding €43million
Small Mid-caps employing between 250-499 persons
Companies which comply with at least one of the innovation criteria
Companies which are not active on the following sectors or activities:
Illegal economic activities according to national laws or regulations, including human cloning for reproduction purposes
Tobacco products and distilled alcoholic beverages
Production of and trade in weapons and ammunition
Casino and gambling
IT companies engaged in activities related to internet gambling, online casinos, pornography or any other activity as mentioned above
Companies in the Life Sciences Sector dealing with:
human cloning / creation of embryos for research or therapeutic purposes,
genetically modified organisms (GMOs), except when appropriate specific assurance is given on the control of legal, regulatory and ethical issues linked to such human cloning for research or therapeutic purposes and / or GMOs
Features of the scheme
€25,000-€100,000 for Start-Ups
Collateral: Guarantees only due to the guarantee provided by the European Investment Fund.
€50,000-€500,000 available to all beneficiaries
Collateral: Reduced collateral requirements due to the guarantee provided by the European Investment Fund.
Loan Duration: 12-120 months
Grace Period: Maximum 2 Years
Pricing / Fees: Ranges from 6M Euribor + 3.20% to 6m Euribor + 4.50%.
Fees and commissions as per the Bank's price list.
Companies which comply with at least one of the Innovation criteria:
Final Recipient Transaction is supported by the InnovFin SME Guarantee Facility, with the financial backing of the European Union under Horizon 2020 Financial Instruments and the European Fund for Strategic Investments (EFSI) set up under the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union and to ensure increased access to financing.