Austrian small and medium-sized businesses will be able to apply for a new €100 million financing programme backed by the European Investment Bank and Hypo Tirol Bank.
The EIB is providing a €50 million loan to Hypo Tirol Bank, with the Austrian lender matching it with another €50 million of its own funding, the EIB announced on Thursday.
Hypo Tirol Bank will on-lend the money to small and medium-sized enterprises (SMEs), mid-sized companies and public-sector entities.
At least 60% of the EIB loan will be allocated to SMEs, while 20% of the EIB financing will be earmarked for climate action projects, including measures to improve the energy efficiency of buildings.
SMEs are generally defined in the EU as companies with fewer than 250 employees.
Eligible investments include projects in tourism, hospitality and regional medium-sized businesses.
The programme is planned to run between 2026 and 2030, with the EIB funds offered on terms including lower interest rates and longer maturities than those generally available on the market.
Agreement signed at Salzburg Summit
The financing agreement was signed on the sidelines of the Salzburg Summit — a high-level economic conference held in Salzburg — the EIB said.
EIB Vice-President Karl Nehammer declared that “access to financing is essential to enable businesses to invest and grow.”
Andreas Stadler, a member of Hypo Tirol Bank’s management board, said the partnership would allow the bank to offer “attractive long-term financing solutions” for businesses in Tyrol.
The new agreement builds on a partnership between the EIB and Hypo Tirol Bank that has run for about two decades, during which the two institutions have worked together on several occasions to improve access to long-term financing for Austrian SMEs and mid-caps.
