Financing Small and Medium Enterprises in the Danube Region Edina Csányi, Budapest Danube Contact Point

Source: EC

So you say you need money?

It is important to know When Why How much Etc. Why When How much

Issues to consider (e.g.) Financial soundness Economic viability Technical soundness Environmental soundness Infrastructure, cost State aid/de minimis Pricing Procurement Legal/Regulatory Etc.

-International -EU level -Transnational -Cross-border -National -Regional, local

„Free money” vs. „not free money” What is „free money”? What is „non-free money”? When do I get „non-free money”? What are the advantages and disadvantages?

EU-grants

COSME Horizon2020 SME Initiative Danube OP Central Europe OP Cross-border OP-s National OP-s – funds for SME-s (20% of ESIF for SME-s) COSME Horizon2020 Danube OP Central Europe OP Cross-border OP-s National OP-s – funds for SME-s http://ec.europa.eu/small-business/finance/index_en.htm

EUR 2.3BN (managed by the EIF) to support SME-s in the following fields: I. Better acces to finance (Loan Gte Facility; Equity Facility for Growth) II. Access to markets (Enterprise Europe Network, web tools, IPR helpdesks) III. Encouraging entrepreneurship (e.g. Erasmus for Young Entrepreneurs) IV. More favorable conditions for business creation and growth

-EUR80BN for R&I between 2014-2020 -Open to everyone, simplified processes -Calls for 2014 and 2015 are already open!

Advice from the Winners Writing tenders/answering calls is a profession – use a professional Winning central EU funds is not about your connections…but about your professionalism (in project preparation and application)

DANUBE Operational Programme 1b, 6c, 7e Transnational OP-s DANUBE Operational Programme 1b, 6c, 7e

Transnational OP-s CENTRAL EUROPE 2020

Other steps by EC Acces to Finance Days Promoting crowd funding Startup Europe Manifesto Easing VAT returns (150M pcs.) Etc.

The „non-free money” …can also come from public/EU funds (financial instruments) loans (+co.), guarantees, venture capital/private equity – why loan/guarantee/VC?

What do you know about EIB and EIF?

Growth and jobs: four key priorities We work to promote sustainable growth and job creation in Europe and beyond 07/08/2018

EIB loan products (simplified) 07/08/2018

What is the EIF? “ We provide risk financing to stimulate entrepreneurship and innovation in Europe ” Making finance more accessible and helping SMEs to innovate and grow Offering a large array of targeted products to support SMES ranging from venture capital to guarantees and microfinance to SMEs Working with financial intermediaries across the EU-28 EFTA countries, candidate & potential candidate countries Supporting the market in a countercyclical way

A few key figures “ We are the prime provider of SME financing in Europe ” 480 venture and growth funds 306 banks, guarantee and promotional institutions 27 funds-of-funds and holding funds Equity 2013 commitments: EUR 1.4bn which mobilised EUR 7.1bn Guarantees & securitisation 2013 commitments: EUR 1.8bn which mobilised EUR 8.6bn Microfinance 2013 commitments EUR 53.8m which mobilised EUR 201m EUR 13.5bn in total outstanding commitments mobilise EUR 79bn

The three pillars of the Juncker-package I. Money II. Good projects III. Environment: investment/enterprise-friendly! http://ec.europa.eu/small-business/finance/index_en.htm

THANK YOU FOR YOUR ATTENTION! Questions? bdcp@mfa.gov.hu