On February 12, Europe committed to support the tourism and leisure industry in France. The European Investment Fund (EIF) signed a guarantee contract covering a €38 million portfolio dedicated to the tourism and leisure sector, managed by the SME loan platform October. The guarantee is the first transaction in France for the pan-European Guarantee Fund (EGF), created to support European Union (EU) companies impacted by Covid-19.
EU Member States have invested in the pan-European guarantee fund up to €25 billion to help companies cope with the crisis and continue to grow. As part of this program, the EIF – the European Investment Bank (EIB) subsidiary dedicated to SMEs – is joining forces with the tech platform October, to propose an extraordinary support layout for French tourism and leisure companies.
A 38 million euro fund guaranteed by the EIF
Following this initiative, the EIF signed the first EGF contract in France, guaranteeing the loans granted by October to support French SMEs in the tourism and leisure industry. The creation of this fund is part of the investment program led by the French insurance federation “Assureurs – Caisse des Dépôts Relance Durable France” (FFA). This guarantee strengthens the commitment of French insurers and the Caisse des Dépôts et Consignation (CDC) to support the rebound of the French economy and particularly of the tourism and leisure sector, greatly impacted by the crisis.
With this dedicated fund, October supports those companies with loans from 30,000 to 1.5 million euros. Acknowledging the difficult period that this sector is going through, these loans offer an 18-month grace period that gives companies the breathing space they need to resume their activity.
“European companies have been hit hard by the economic fallout from COVID-19. To help alleviate some of the pressure, the EIB Group created the Pan-European Guarantee Fund. I am very pleased that the EIF’s first transaction under this fund is with October, a trusted partner with whom we have worked closely in the past. I am convinced that thanks to their innovative approach to financing, we will be able to make a significant contribution to supporting French companies in the tourism and leisure sector” said Alain Godard, EIF Chief Executive Officer.
“This new project is an opportunity to thank both the European Investment Fund and the European Investment Bank for their historical support. This support is essential to help us put technology at the service of European SMEs” said Olivier Goy, Chairman of October.