French SMEs get EUR 300m boost from EIB and Société Générale

Microfinance Focus, July 20, 2010: Supporting projects by French small and medium-sized enterprises (SMEs), The European Investment Bank (EIB) and Société Générale have issued a EUR 300 million credit line yesterday.  An initial EUR 300 million loan advanced in January 2009 has already helped to finance nearly 2 800 projects promoted by 1 950 French SMEs.

This partnership will enable independent, development-minded French SMEs with fewer than 250 employees to contract loans with terms of at least two years throughout the Société Générale network on the EIB’s preferential terms.

This new agreement comes under the EUR 30 billion financing support plan to assist European SMEs launched by the EIB in September 2008 for the period 2008-2011. To tackle the financial crisis, the EIB was quick to step up its support for SMEs. In 2009 alone, the EIB lent EUR 12.7 billion – i.e. 55% more than in 2008 – to banks in the form of credit lines for the financing of small businesses. The EIB has helped more than 50 000 SMEs across the EU in this way. In 2009, the EIB provided finance totalling EUR 70 billion in the EU, a 36% increase on the EUR 51.7 billion advanced in 2008. Of 2009’s total, EUR 6.3 billion was lent in France.

With a 3.1% increase in outstanding loans at end-2009 compared to end-2008, Société Générale has demonstrated its financial backing for the French economy. On top of the measures taken in 2009, particularly the reorganisation of its lending decision-making arrangements, the bank continues to show its commitment in support of SMEs. In 2010, satisfaction surveys are being conducted systematically after loans have been provided in order to respond better to customers’ expectations.

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