The European Investment Bank (EIB) and finance&invest.brussels, a regional institution serving the Brussels Capital Region, have signed a €50m ($57.6) loan agreement to boost small and medium-sized enterprise (SME) lending.

This support will allow finance&invest.brussels to provide up to €140m in new loans to local SMEs and mid-caps on more favourable terms.

finance&invest.brussels aims to make it easier for entrepreneurs to secure funding for business expansion and employment creation by lowering collateral demands and enhancing lending conditions.

It will remain responsible for all lending decisions, directing resources towards sectors such as financial and legal technology, urban agriculture, creative industries and sustainable food production.

finance&invest.brussels was established in 1984 as a public limited company.

The institution provides loans, capital, and guarantees, seeking to address critical financial needs at different stages for start-ups, SMEs, scale-ups, social entities, and cooperatives.

finance&invest.brussels CEO Pierre Hermant said: “This partnership with the EIB confirms our commitment to providing concrete and sustainable support to SMEs in the Capital Region. In a constantly evolving economic context, it is essential to support entrepreneurs in their growth and transition projects.

“By facilitating access to financing, we are helping to strengthen the dynamism and attractiveness of Brussels, a region that remains an innovative and globally connected economic hub.”

The loan extends previous collaboration between finance&invest.brussels and the European Investment Fund, which operates within the EIB Group.

In 2021 and 2023, guarantee agreements with the Fund contributed €54m and €78m respectively, to support local SMEs and mid-caps.

Last month, the EIB and European Commission agreed a €400m facility agreement with the Palestine Monetary Authority.

The announcement was made at the UN General Assembly in New York after approval by the EIB Board in July.