The Competitiveness and Innovation Framework Programme (CIP) aims to encourage the competitiveness of European enterprises. With small and medium-sized enterprises (SMEs) as its main target, the programme will support innovation activities (including eco-innovation), provide better access to finance and deliver business support services in the regions. It will encourage a better take-up and use of information and communications technologies (ICT) and help to develop the information society. It will also promote the increased use of renewable energies and energy efficiency. The programme will run from 2007 to 2013. The CIP is divided into three operational programs, and comprises a number of financial measures. Under the SME Guarantee Facility (SMEGF), part of the CIP program, the EIF provides capped guarantees partially covering portfolios of financing to SMEs. EIF manages the SMEGF on behalf of the European Commission.
BDB was approved for financial intermediary under the program in February 2009, pursuant to a guarantee line agreement with the European Investment Fund. In compliance with the contractual and program requirements, BDB shall apply reduced collateral requirements under certain conditions to loans, extended to small and medium sized enterprises under the programs listed below.
