EIF

The European Investment Fund (EIF) is a specialist financial institution within the European Union and a member of the European Investment Bank (EIB) Group. Its mandate is to support small and medium-sized enterprises (SMEs) and microenterprises by providing risk capital, guarantees, and microfinance instruments. The EIF is headquartered in Luxembourg and operates across EU member states and associated countries.

Established in 1994 to improve access to finance for SMEs, the EIF acts mainly through intermediaries rather than lending directly to small firms. Its activities include equity investments in start-ups and growth-stage companies via venture capital funds, and guarantees or counter-guarantees to banks and other financial institutions to foster SME lending. The EIF also manages microfinance facilities to support micro-entrepreneurs and inclusion in underserved segments.

As part of the EIB Group, the EIF is wholly owned by the European Investment Bank and collaborates with public authorities, financial institutions, and private investors to design and implement financial instruments aligned with EU policies. It participates in programs that address market gaps, such as those supporting innovation, job creation, and regional development. While it does not typically offer direct loans to SMEs, it enables access to funding by sharing risk with financial intermediaries and by providing venture capital and equity investments.

Governance and oversight are conducted within the framework of the EIB Group and EU policy objectives, with coordination with the European Commission on program design and impact assessment. The EIF’s work is measured by its contribution to SME financing, innovation, and growth across Europe.