EIF and ING Unlock €128.5 M to Help Dutch SMEs Invest in Innovation and Growth

The sustainability guarantee will initially provide €25.7 million in lending capacity for enterprises investing in environmentally responsible technologies, production systems and business activities.

Small and medium-sized enterprises (SMEs) in the Netherlands will gain access to up to €128.5 million in new financing through a partnership between the European Investment Fund (EIF) and ING, designed to support business growth, innovation and sustainability. The agreement will help Dutch companies secure funding for digital transformation, environmentally friendly investments and expansion projects that may be difficult to finance through conventional bank loans. Supported by the European Commission's InvestEU programme, the initiative is expected to strengthen the financial position of smaller businesses and create opportunities for long-term investment.

The financing will be provided through subordinated debt, a form of borrowing that can help companies strengthen their balance sheets and improve their ability to attract additional funding from traditional lenders. Unlike regular bank financing, subordinated loans rank below senior debt in repayment priority and can provide businesses with greater financial flexibility under more favorable lending conditions. This arrangement could allow companies to undertake larger investment projects, purchase advanced equipment or develop new technologies without being restricted by their existing financing capacity.

The agreement includes two separate guarantee schemes covering investments in innovation, digitalisation and sustainability, reflecting the growing demand for flexible financing among Dutch businesses. At least €102.8 million in new lending is intended for companies pursuing innovation and digital transformation, with an initial €25.7 million allocated to enterprises investing in sustainable business practices. The EIF guarantees will reduce part of ING's lending risk, allowing the bank to make more capital available to businesses seeking financing for projects that support productivity, competitiveness and environmental improvements.

€102.8 Million to Support Innovation and Digital Transformation

The innovation and digitalisation guarantee will make at least €102.8 million available for Dutch SMEs planning to invest in new technologies, modernize business operations and strengthen their competitive position. Companies developing software, adopting digital systems or expanding technology-based services could benefit from financing that supports projects requiring substantial investment over an extended period. The scheme is designed to address financing challenges faced by businesses whose growth plans may exceed the borrowing capacity available through standard banking arrangements.

Subordinated debt can improve a company's financial structure because lenders often assess it differently from senior borrowing when evaluating financial capacity. By strengthening their balance sheets, participating businesses may find it easier to obtain additional senior financing for expansion, equipment purchases and other strategic investments. This approach could help Dutch enterprises pursue innovation projects that might otherwise be delayed by limited access to suitable financing.

€25.7 Million to Encourage Sustainable Business Investment

The sustainability guarantee will initially provide €25.7 million in lending capacity for enterprises investing in environmentally responsible technologies, production systems and business activities. Eligible investment examples include replacing outdated machinery with energy-efficient production lines or financing strategic acquisitions that help companies move toward circular business models. Such investments can help businesses reduce resource consumption, improve operational efficiency and adapt their production methods to changing environmental and market requirements.

Laurens de Vos, Head of ING Business Banking at ING Netherlands, emphasized that the EIF partnership will allow the bank to provide stronger financial support to smaller businesses with ambitious investment plans. He highlighted software company expansion, energy-efficient machinery upgrades and acquisitions supporting the circular economy as examples of projects that could benefit from the financing. The availability of more flexible long-term borrowing could help SMEs make investments that strengthen their businesses and contribute to Europe's sustainability and innovation priorities.

EU-Backed Guarantees to Strengthen SME Financing

The partnership operates under the European Union's InvestEU programme, which uses financial guarantees to encourage investment in businesses and projects across Europe. Under this arrangement, the EIF provides partial guarantees on eligible bank lending portfolios, with the European Union budget providing additional protection through counter-guarantees. This structure allows financial institutions such as ING to reduce lending risks and offer more advantageous financing conditions to businesses seeking growth capital.

EIF Chief Executive Marjut Falkstedt welcomed the agreement, describing ING as an established partner of the European Investment Bank Group in supporting smaller enterprises across Europe. She explained that portfolio guarantees can help banks release additional capital for business lending and encourage investment in innovation, sustainability and competitiveness. The collaboration supports the European Union's broader efforts to strengthen strategic autonomy by helping European businesses develop their capabilities and remain competitive.

The financing initiative reflects the growing importance of providing smaller companies with financial products that meet their investment needs beyond conventional business loans. Access to subordinated debt could help Dutch SMEs pursue digital transformation, modernize industrial equipment and develop more sustainable operations without relying entirely on traditional senior financing. Through the €128.5 million agreement, the EIF and ING expect to support business investment, innovation and employment opportunities in the Netherlands, contributing to the wider economic priorities of the European Union.