Portugal offers 6.5 billion euros in corporate funding

The Portuguese Prime Minister Luís Montenegro announced the largest partnership ever set up between the Portuguese Government and the European Commission and European Investment Fund (EIF) to support small and medium-sized enterprises (SMEs), Small MidCaps, and private individuals. 

The announcement was made before more than a thousand entrepreneurs and corporate leaders at the event "Talks in Development" hosted by the Portuguese Development Bank (BPF) in Santa Maria da Feira. 

The EIF-Development InvestEU programme will allocate more than 6.5 billion euros in investment, representing the greatest amount ever through a Member State component in InvestEU in the whole of Europe. 

The EIF posted a Notice-Bid for expression of interest to select the Portuguese banks that will operationalise the loans secured under the programme. The first operations should be signed before the end of 2025. 

The aim of the programme is to support the Portuguese economy’s transformation in the fields of innovation, digitalisation, sustainability, competitiveness, and agriculture financing projects developed by more than 40,000 SMEs, small midcaps, and private individuals. 

Boosting small and medium-sized enterprises

Luís Montenegro stated that "this partnership between Portugal and the European Commission under the EIF InvestEU represents a fundamental pillar in boosting the micro, small, and medium-sized enterprises that are part of the Portuguese economy’s investment network. It is a firm commitment between Portugal and Europe to promote investment geared towards growth". 

"Portugal now has a new corporate financing instrument in support of SME investment in strategic areas such as competitiveness, innovation and digitalisation, sustainability, and agriculture. This new partnership complements in a very effective way the set of instruments being implemented by the BPF as the sovereign bank in Portugal to finance the economy on a large-scale and under competitive market conditions", noted the Minister of Economy and Territorial Cohesion Castro Almeida. 

"This new agreement with the Portuguese Government opens a new chapter in our collaboration, based on successful programmes we have developed jointly. InvestEU will enable us to mobilize significant financial assistance for dozens of thousands of Portuguese companies, fostering competitiveness, sustainability and innovation", stressed the EIF Chief Executive Marjut Falkstedt. 

Advantageous financing

The InvestEU will be supported by 450 million euros from the Recovery and Resiliene Facility (RRF), 50 million euros in public guarantee out of the State Budget, and 490 million euros in EIF resources. 

The programme was included in the most recent revision of the Recovery and Resilience Facility (Investment RE-C05-i16 InvestEU: Member State Component in InvestEU) submitted on 1 February 2025 and approved by the Council of the European Union on 13 May 2025. 

The EIF guarantee will enable partner banks to offer more advantageous financing conditions, including lower interest rates, less collateral requirements, and lower downpayments for investment loans. 

In addition, with the EIF guarantee, banks will be able to offer longer reimbursement times, high financing sums, and support segments that are typically excluded, such as start-ups. 

EIF and InvestEU

The European Investment Fund (EIF) is part of the European Investment Bank Group. It assists small companies in Europe, improving their access to financing via a wide network of selected financial intermediaries, including banks, mutual guarantee and leasing firms, microcredit bodies, and venture capital funds. 

The EIF develops and offers capital and debt instruments that contribute towards the European Union goals in areas such as entrepreneurship, growth, innovation, research and development, the green and digital transitions, and job creation. 

The InvestEU Member State Component enables EU Member States to channel part of their shared management funds, resources under the Recovery and Resilience Mechanism and national resources to the InvestEU Fund by setting up a specific component. 

This voluntary contribution enables Member States to enjoy the InvestEU guarantee to support specific national priorities. Under this segment, they can have loans, guarantee or equity investments as a complement to other public and private investments.

The "Talks in Development", hosted by the Portuguese Development Bank were attended by the Prime Minister and the Ministers of Economy and Territorial Cohesion, Castro Almeida, Agriculture and Maritime Affairs José Manuel Fernandes, and the EIF Chief Executive Marjut Falkstedt.