Portfolio Guarantees for SMEs
Facilitating Access to FinanceIn line with our mission to support economic development and the competitiveness of the business environment, the Investment and Development Bank (BID) provides portfolio guarantees in its own name and on its own account.
This financial instrument is intended for financial intermediaries to support access for small and medium-sized enterprises, including liberal professions and start-ups, to the resources needed for investment and working capital, which are essential for carrying out current activities and ensuring sustainable development.
The portfolio guarantee program represents one of BID’s strategic pillars: facilitating access to finance for SMEs, including start-ups, liberal professions, and innovative companies.
De minimis aid
This product is developed by BID in accordance with de minimis aid rules and allows for the reduction of the total financing costs for SMEs. The support provided is reflected in more favourable lending conditions, with the final beneficiary being able to access non-repayable aid of up to EUR 300,000 over a period of three years.
DNSH
Applying the Do No Significant Harm (DNSH) principle across BID’s investments, financed projects and final beneficiaries supports the transition towards an economy that contributes to achieving Romania’s greenhouse gas emissions reduction targets.
This product is developed by BID in accordance with de minimis aid rules and allows for the reduction of the total financing costs for SMEs. The support provided is reflected in more favourable lending conditions, with the final beneficiary being able to access non-repayable aid of up to EUR 300,000 over a period of three years.
Applying the Do No Significant Harm (DNSH) principle across BID’s investments, financed projects and final beneficiaries supports the transition towards an economy that contributes to achieving Romania’s greenhouse gas emissions reduction targets.
Through this initiative, BID fulfils its mission of facilitating increased access to finance for SMEs, contributing to a more competitive and resilient business environment.
Distribution model: Guarantees are available through selected financial intermediaries (banks and other non-banking financial institutions).
Use of loans
- Investments in tangible and intangible assets
- Working capital
- New loans, excluding refinancing
Guarantee rate: up to 70%*
*Up to 80% for:
- start-ups
- SMEs owned/managed by women
- innovation
- sustainability
Currency: RON
Availability period of the guarantee ceiling: up to 3 years.
Maximum guaranteed transaction value:
- RON 10,000,000 / transaction
- RON 500,000 / transaction: for financing granted by non-banking financial institutions certified in microfinance
Maximum maturity of transactions included in the ceiling:
- Min. 12 months / Max. 120 months
- Max. 60 months – for transactions between RON 5 and 10 million
SMEs that:
- Fall within the EU definition (EU Recommendation 2003/361)
- Are active on the Romanian market
- Are not subject to insolvency proceedings and comply with Romanian legislation in the field
- Meet the criteria for de minimis aid eligibility at the time of financing approval
- Meet the Know Your Customer (KYC) requirements set out in the internal rules of financial intermediaries
Exclusions:
SMEs active in the following areas are not eligible:
- Fisheries and aquaculture (primary production, sales, processing)
- Agriculture (primary production, sales, processing)
- Export-related activities (e.g. establishing and operating a distribution network in another Member State)
- Supporting access to finance for SMEs that do not have sufficient assets to secure credit facilities or that do not qualify for financing on reasonable pricing terms from a financial standpoint.
- Facilitating access to finance for SMEs by addressing specific and clearly identified market failures in the financial market.
Use of loans
- Investments in tangible and intangible assets
- Working capital
- New loans, excluding refinancing
Guarantee rate: up to 70%*
*Up to 80% for:
- start-ups
- SMEs owned/managed by women
- innovation
- sustainability
Currency: RON
Availability period of the guarantee ceiling: up to 3 years.
Maximum guaranteed transaction value:
- RON 10,000,000 / transaction
- RON 500,000 / transaction: for financing granted by non-banking financial institutions certified in microfinance
Maximum maturity of transactions included in the ceiling:
- Min. 12 months / Max. 120 months
- Max. 60 months – for transactions between RON 5 and 10 million
SMEs that:
- Fall within the EU definition (EU Recommendation 2003/361)
- Are active on the Romanian market
- Are not subject to insolvency proceedings and comply with Romanian legislation in the field
- Meet the criteria for de minimis aid eligibility at the time of financing approval
- Meet the Know Your Customer (KYC) requirements set out in the internal rules of financial intermediaries
Exclusions:
SMEs active in the following areas are not eligible:
- Fisheries and aquaculture (primary production, sales, processing)
- Agriculture (primary production, sales, processing)
- Export-related activities (e.g. establishing and operating a distribution network in another Member State)
- Supporting access to finance for SMEs that do not have sufficient assets to secure credit facilities or that do not qualify for financing on reasonable pricing terms from a financial standpoint.
- Facilitating access to finance for SMEs by addressing specific and clearly identified market failures in the financial market.