The European Investment Bank (EIB) has signed a loan agreement with Banco de Sabadell to finance the investment projects of SMEs and midcaps. The projects eligible for financing will mostly be located in Spain and to a lesser degree in other EU countries. EIB and Banco de Sabadell will contribute with €200 million each.

Supporting SMEs is one of EU's main objectives and therefore, also one of the European Investment Bank (EIB)’s investment priorities. For this reason, the EIB has signed a €200 million loan agreement with Banco de Sabadell to finance the investment projects of SMEs and midcaps (companies with up to 3000 employees), mainly in industry and services. Banco de Sabadell will match the EIB loan with the same amount. In 2011, the European Investment Bank funding for SMEs reached a record level.

Around 30% of the funds is earmarked for projects in convergence regions. The projects eligible for financing will mostly be located in Spain and to a lesser degree in other EU countries. The EIB support projects that make a significant contribution to growth, employment, regional cohesion and environmental sustainability in Europe and beyond.

This agreement comes under the EIB’s policy of assisting small businesses in the current economic crisis by facilitating their access to credit with long maturities, flexible disbursement schedules and preferential interest rates in order to foster job creation.