Better access to finance for Northern Swedish businesses through EU guarantee

The European Investment Fund (EIF) and the Swedish public investment agency Norrlandsfonden have signed a guarantee agreement to improve access to finance for SMEs and small Mid-Caps in Northern Sweden. The transaction is supported by the European Union’s InvestEU programme and is expected to benefit more than 120 companies throughout the Norrbotten, Västerbotten, Västernorrland, Jämtland and Gävleborg regions in Sweden. The European Investment Fund’s backing of Norrlandsfonden through the InvestEU programme will allow the intermediary to offer better lending conditions to its clients, in the form of reduced interest rates.

“In the coming years, northern Sweden is set to receive substantial investments, some of which are already in progress. The agreement between EIF and Norrlandsfonden will play a crucial role in supporting a green economy, fostering innovations and serving as an important financial tool for our region. This will enable Norrlandsfonden to become even stronger in the coming years and support small and medium-sized businesses in northern Sweden.” said Niklas Jonsson, CEO of Norrlandsfonden.

EIF Chief Executive Marjut Falkstedt commented: “The EIF needs regional partners like Norrlandsfonden to make sure that financial support can reach clients throughout Sweden. Norrlandsfonden’s expertise and knowledge of the local market provide optimal conditions to channel EU-backed funding to Swedish businesses, highlighting the direct link between the European project and local communities. We look forward to this renewed collaboration and the opportunity to back small businesses that are striving to innovate and drive the green transition in a region that is becoming a hotbed of innovation and sustainability.’’

The InvestEU guarantee agreement with Norrlandsfonden is split between the European Union’s “Innovation and Digitalisation” and “Sustainability” investment priorities. On one hand, the “innovation and digitalisation” part of the guarantee will allow Norrlandsfonden to further support innovation and digitalisation driven businesses, by enhancing access to finance to Research & Innovation-intensive companies, as well as supporting their digital transformation and uptake of digital technologies. Next to this, the “sustainability” guarantee part will see Norrlandsfonden boosting the green and sustainable transformation of the economy through the support for the environmentally friendly, green and inclusive investments of its clients throughout Northern Sweden, a region at the forefront of Europe's transition towards a sustainable economy.