InvestEU is a programme that, through a guarantee from the European Union budget, enables banks and financial institutions to finance projects they would otherwise consider too risky. It is not a grant or direct financing – a company accesses the funds through an intermediary bank or fund that has a contract with the programme. Supported areas include sustainable infrastructure, research and innovation, small and medium-sized enterprises, and social investment and skills. In practice it takes the form of a favourable loan, a longer repayment period or a lower collateral requirement. The programme also includes an advisory hub that helps with the preparation of larger investment projects. It is worth companies asking directly at their own bank which products are guaranteed in this way.
See also: Financial instruments, Bank guarantee and preferential loan, European Investment Bank.
