The Action contributes to the general objectives of the Instrument, namely to support the SME segment in Eastern Partnership Countries through improving access to finance, in the form of enhanced lending terms and conditions, via providing first loss SME portfolio guarantees. The Action is designed to facilitate access to finance to SMEs in the selected countries, through the provision of a Guarantee Facility offering SME portfolio guarantees to local banks and other financial intermediaries, enabling them to enhance transaction terms and conditions.

1. Support to overcome the social and economic consequences of the Covid-19 pandemic.
2. Enhance access to finance for SMEs as a result of reduced collateral requirements, lower financing costs and supporting access to finance in local currencies.
3. Provide response to the financial needs of business.

1. The Action can mobilise an approximate minimum amount of EUR 200m of new debt transactions to SMEs
2. Assuming an average transaction size of EUR 175,000, at least 1,150 SMEs will gain access to finance
3. Assuming a 6 headcount per SME, some 12,000 jobs (FTE) will be supported.