Commission launches proposal for COSME, the successor programme for CIP

On the 30^th of November, the Commission presented the Competiveness and Innovation programme (CIP) follow-up programme called, Competitiveness of Enterprises and SMEs (COSME). A budget of €2.5 billion over the period 2014-2020 will ensure the continuity of activities to promote access to finance and encourage entrepreneurial culture in Europe. COSME is a funding instrument, which will continue largely the activities of the current CIP programme.

The financial instruments under COSME comprehend both a debt and an equity facility to improve SME access to finance. As regards the debt facility, through COSME, the Commission will be providing enterprises and in particular SMEs with a Loan Guarantee Facility, which will offer guarantees for:

• debt financing via loans, subordinated and participating loans or leasing to reduce the particular difficulties SMEs face in accessing finance for their growth;

• securitization of SME debt finance portfolios, aimed at mobilizing additional debt financing for SMEs.

The Loan Guarantee Facility shall, except for loans in the securitized portfolio, cover loans up to €150 000 and with a minimum maturity of 12 months. This guarantee facility will be supplemented by another guarantee programme under Horizon 2020 (see respective newsletter article), which will be accessible for more innovative SMEs with loan amounts of over € 150.000.

The COSME proposal is now being examined by the European Parliament and Council with a view for adoption.

Read more:

http://ec.europa.eu/enterprise/newsroom/cf/itemlongdetail.cfm?item_id=5610&lang=en&tpa_id=0&displayType=news

http://ec.europa.eu/cip/files/cosme/com_2011_0834_proposition_de_reglement_en.pdf