The European Commission has today issued practical guidance to assist Member States in evaluating whether public measures intended to facilitate access to finance for specific companies qualify as State aid.
Risk finance plays a crucial role in bolstering economic financing, especially for the support and growth of start-ups and small to medium-sized enterprises (SMEs).
The guidance offers non-binding advice on implementing risk finance measures that adhere to EU State aid rules. It delineates the evaluation of aid presence concerning investors, target companies, and financial intermediaries or managers.
Additionally, it specifies criteria for identifying private investors for MEOP purposes and outlines how the principle can be met in various scenarios, such as instances where public authorities co-invest alongside private entities.
The use of this type of instruments has been enhanced with the introduction of new instruments such as the Recovery and Resilience Facility or the Green Deal.
For further information: see Commission’s Press Release and the Guidance