Savings Bank launches €50 million for Finnish SMEs with European support

Savings Bank gets European Investment Fund guarantee to support Nordic small and medium-sized enterprises, made possible by the European Guarantee Fund (EGF). The guarantee will allow Savings Bank to support Finnish companies hit by COVID with €50 million, allowing them to benefit from EU crisis funds. The EGF guarantee program enables Savings bank to provide new financing to SMEs more favourable terms for investments and working capital needs. The guarantee complements the Savings Bank's already strong lending capacity and financing possibilities for SMEs.

Small & Midsize enterprises (SMEs) in Finland will soon have access to additional funding in the wake of the COVID-19 pandemic. To help companies deal with the fallout of health-related restrictions, Savings Bank has signed an agreement with the European Investment Fund (EIF) for a credit guarantee programme that will make available €50 million in new, advantageous lending to support them.

The guarantee from the EIF falls under the “European Guarantee Fund”, meant to ensure that European SMEs have sufficient financing available to mitigate the economic impacts of the COVID-19 crisis and are able to continue their growth and development in the medium to long-term. The programme makes it possible for Savings Bank to offer enhanced conditions to their borrowers.

Kari Suutari, CBO for corporate customers of Savings Bank says in a comment: The EGF guarantee is cost-effective and covers largely the need of financial collateral. The guarantee enables Savings Banks to finance the development and profitable growth of existing and new SMEs, which will be significant benefit to our customers. I believe that the new EGF guarantee program will further strengthen the high level of customer satisfaction of the corporate customers of Savings Bank.

European Investment Fund Chief Executive Alain Godard added: The European Guarantee Fund allows the EIF to reach out and provide much-needed financing to European SMEs, allowing them to weather the COVID storm and grow. As in other countries, Finnish businesses have had to deal with an important economic fallout related to the COVID pandemic and the EIF is glad to be able to partner with the oldest bank in Finland to do its part in making this financial support available.

EIF