EU-Guaranteed Loans via The European Investment Fund (EIF)

Program's Description

Many innovative companies develop high-risk technologies and therefore either struggle to obtain credit or receive loans with daunting terms. To help these companies receive more affordable credit, the European Investment Fund (EIF) has launched a program that enables them to receive a European Investment Bank (EIB) state-guaranteed loan via Israeli credit entities.

This program is part of the EU’s flagship Horizon 2020 Program and is operated in Israel by the following entities:

  • Bank Leumi (via its Commercial Banking Centers in the Corporate Division and Leumi Tech)
  • Peninsula Fund

Goal of the incentive program

  1. To enable Israeli companies at growth stages that meet the program’s criteria to receive a loan at preferential terms and lower interest rates.
  2. To enable companies to diversify their sources of credit via an attractive credit financing option.

Who is the incentive program for?

High-tech companies or innovative industrial and commercial companies that are defined as SMEs to
Middle Market Companies (with up to 3,000 employees) and which are at growth stages. The loan will
be given according to negotiations and financial considerations of the lending entity, and subject to the
program’s terms and conditions.

What do you get?

  • A loan of up to USD 8.8 million at preferential terms. 50% of the loan will be secured by EU guarantee.
  • Duration of Loan – 1-10 years. The loan will be given in NIS / USD / EUR / GBP.

Due to the COVID-19 pandemic, in some cases the loan will be given with European guarantee of up to 80% for working capital purposes only and with a bridging option of up to 6 months. This benefit is valid until June 2021 – further details will be provided by the financial entities operating the program in Israel.

Why should I join this incentive program?

  • The program gives early stage companies, that are considered high-risk, access to credit which they would not have received or that they would have received at unaffordable terms without the program.
  • The backing of the European Investment Bank – one of the world’s largest and most stable banks – enables the Israeli credit entities to provide loans at especially attractive terms.
  • Connecting early stage companies to government programs constitutes a “mark of quality” in strengthening their capability vis-a-vis global clients and investors.
  • Companies participating in the program receive EIF guidance that helps them to build a marketing plan, to create PR film clips etc.

Israeli Companies

Israeli companies seeking further information on the requirements and application process to this program, should refer to the Israel Innovation Authority’s Hebrew site: