ING Luxembourg and the European Invesmtnet Fund (EIF) signed an agreement that guarantees an increase in financial support to innovative SMEs,, as well as small Mid-caps, under InnovFin – EU financing mechanism for innovation, supported by the European Commission, yesterday 21 May.

The new agreement allows ING Luxembourg to provide financial backing to innovative companies in Luxembourg up to a total of €50M over the next two years, with the support of a guarantee provided by the EIF, under Horizon 2020, the EU Framework Programme for Research and Innovation. This is the first agreement of its kind in Luxembourg, enabling ING to offer innovative businesses additional financing at favourable conditions.

Commenting on the signature, EIF Chief Executive, Pier Luigi Gilibert said: “I am pleased to be signing the first InnovFin SME Guarantee agreement in Luxembourg with ING for the benefit of innovative companies. Following this agreement, we are convinced that together with ING we can provide support to innovative businesses in need of finance in Luxembourg”.

Carlos Moedas, European Commissioner for Research, Science and Innovation, said: "According to this year's Innovation Union Rankings Luxembourg is among the top countries in Europe in innovation performance. The InnovFin SME Guarantee agreement signed today will stimulate this performance further by benefiting SMEs, which are at the heart of our economy."

Luc Verbeken, CEO of ING Luxembourg added: “ING is very proud to be the first partner of the EIF in providing finance to Luxembourg innovative companies. It is an important part of our efforts to support local companies and more specifically SMEs which are key actors in the development of the Luxembourg economy.”

The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to SMEs and small mid-caps (companies with fewer than 500 employees) in need of investment and/or operating capital to finance research, development and innovation activities, with EU financial support. Financial institutions are being selected by the EIF following a call to gauge the interest for financial intermediaries across Europe.

Photo by ING Luxembourg