Portfolio Guarantee can facilitate access to funding for small and medium size enterprises (SMEs) when an SME is unable to provide a collateral that is attractive or sufficient to a financial institution.

A portfolio guarantee secures the repayment of 80% of the principal amount of loan/leasing to a financial institution. With Portfolio guarantees financial institutions require a smaller down payment and apply a lower interest rate as compared to market conditions. Portfolio guarantees are issued as de minimis aid as defined in the Commission Regulation (EU) 1407/2013.

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