The European Commission adopted on 11 July 2016, two new financial instruments for European Structural and Investment Funds, to ease access to funding for young businesses and urban development project promoters. These instruments are designed to increase the take-up by Member States of revolving financial support rather than traditional grants, and to combine public and private resources.
Financial instruments, compared to grants, attract more private and public resources to complement the initial public funding and can be reinvested over several cycles. In this framework, the European Commission launched the following instruments:
· A co-investment facility to provide funding to start-ups and SMEs. This support will enable them to develop their business models and attract additional funding through a collective investment scheme. Total investment combining public and private resources can amount to up to 15 million EUR per SME.
· Urban development funds will support sustainable urban projects, for instance in public transport or in energy efficiency. Projects must be financially viable and part of an Integrated Sustainable Urban Development strategy. Total investment combining public and private resources can amount to up to 20 million EUR per project. The support will take the form of a loan fund managed by a financial intermediary, with ESI Funds resources and a contribution of at least 30% from private capital.
More information: http://ec.europa.eu/regional_policy/en/funding/financial-instruments/