SMEs are the backbone of Member States’ economies, and are central to the EU’s economic development and resilience as a whole. Risk finance aid addresses market failures or other relevant obstacles that prevent SMEs and certain other non-large enterprises (ie, start-ups or certain middle-capitalisation firms (mid-caps), namely small or innovative mid-caps) from attracting the financing they require (eg, loans, guarantees or equity) to develop to their full potential. Risk finance aid for SMEs and start-ups, up to €15 million per beneficiary, can be block-exempted under the General Block Exemption Regulation (GBER); whereas aid to innovative or small mid-caps, or aid that goes beyond the GBER conditions, can be notified by the Member State and approved by the European Commission under the Risk Finance Guidelines. This article describes the revised Risk Finance Guidelines of 2021 and the ongoing revision of the GBER section on risk finance.
Keywords: risk finance; risk capital; SMEs; start-ups; mid-caps; access to finance; GBER; Risk Finance Guidelines