Commission Implementing Decisionof 11 September 2014on the model of funding agreement for the contribution of the European Regional Development Fund and the European Agricultural Fund for Rural Development to joint uncapped guarantee and securitisation financial instruments in favour of small and medium-sized enterprises(2014/660/EU)
Article 1
The model of the funding agreement for the financial contribution...
Article 2
This Decision shall enter into force on the day following...
ANNEX
[MANAGING AUTHORITY OF MEMBER STATE PARTICIPATING IN THE SME INITIATIVE]
This Agreement is entered into on [•] 2014, by and...
[ Managing Authority of Member State participating in the SME...
WHEREAS:
(1)
Following the conclusions of the European Council of 27 and...
(2)
the Ex-Ante Assessment exercise was concluded in December 2013 and...
(3)
on 17 December 2013, Regulation (EU) No 1303/2013 of the European...
(4)
pursuant to Article 38(1)(a) of the CPR, managing authorities may...
(5)
pursuant to Regulation (EU) No 1287/2013 of the European Parliament...
(6)
pursuant to Regulation (EU) No 1291/2013 of the European Parliament...
(7)
on [date] [and on [date], respectively,] the European Commission [,...
(8)
in the context of the SME Initiative, the Parties are...
(9)
pursuant to Article 39(4)(b) of the CPR, on [insert date]...
(10)
pursuant to Article 39 of the CPR, the conditions to...
(11)
the Dedicated Window[s] shall be implemented as a part of...
(12)
also taking into account the results of the Ex-Ante Assessment...
(13)
the set-up of the Dedicated Window[s] is compliant with state...
(14)
the signature of this Funding Agreement on behalf of the...
(15)
the signature of this Funding Agreement on behalf of the...
the Parties have agreed as follows:
Article 1
Definitions and Interpretation
Article 2
Purpose and Scope of this Funding Agreement
Article 3
Eligibility and exclusion criteria of the New Debt Finance
Article 4
General principles related to the implementation and management of the Dedicated Window[s]
Article 5
Objectives and Description of the Dedicated Window[s]
Article 6
Territorial Coverage
Article 7
Minimum Leverage Effect, Milestones and Penalties
Article 8
Tasks and obligations of the EIF
Article 9
Selection of Financial Intermediaries and Operational Agreements
Article 10
Governance
Article 11
MS Contribution
Article 12
EIF Contribution
Article 13
Dedicated Window[s] Account[s] and Treasury Asset Management
Article 14
Management Costs and Fees
Article 15
Accounting
Article 16
Operational and financial reporting
Article 17
Audits, Controls and Monitoring
Article 18
Evaluation
Article 19
Procurement of goods, works and services
Article 20
Visibility
Article 21
Publication of information on Financial Intermediaries
Article 22
Assignment
Article 23
Liability
Article 24
Governing Law and Jurisdiction
Article 25
Effectiveness — Termination
Article 26
Notices and Communications
Article 27
Amendments and miscellaneous
Article 28
Annexes
ANNEX 1
UNCAPPED GUARANTEEINSTRUMENT
SME Initiative — option 1
SME INITIATIVE UNCAPPED GUARANTEE INSTRUMENT — OPTION 1
SECURITISATION INSTRUMENT
SME initiative — option 2
SME INITIATIVE SECURITISATION INSTRUMENT
ANNEX 2
Exclusion criteria for Financial Intermediaries and Final Recipients and eligibility...
1.
EXCLUSION CRITERIA FOR FINANCIAL INTERMEDIARIES
2.
EXCLUSION CRITERIA FOR FINAL RECIPIENTS
3.
ELIGIBILITY CRITERIA FOR THE EU CONTRIBUTION
3.1.
Eligibility criteria for the EU Contribution to the COSME Financial...
3.2.
Eligibility criteria for the EU Contribution to the H2020 Financial...
Commission Implementing Decision
of 11 September 2014
on the model of funding agreement for the contribution of the European Regional Development Fund and the European Agricultural Fund for Rural Development to joint uncapped guarantee and securitisation financial instruments in favour of small and medium-sized enterprises
(2014/660/EU)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006
, and in particular the second subparagraph of Article 39(4) thereof,
Whereas:
(1)
The financial crisis has affected small and medium-sized enterprises (SMEs) in the European Union since 2009 due,
inter alia
, to the deleveraging carried out by European banks in their balance sheets to comply with the capital requirements enshrined in Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC
and Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012
. In order to address the resulting potential market failures for financial services and financial instruments for SMEs, the European Council has mandated the Commission to explore options for making financial instruments available to SMEs at a pan-European level.
(2)
The Commission, together with the European Investment Bank (EIB), concluded in December 2013 an
ex-ante
assessment exercise
showing a market failure in the provision of finance to viable SMEs in the European Union comprised in an estimated range of EUR 20 to 112 billion.
(3)
The
ex-ante
assessment stressed the importance of a fast response to the financial crisis affecting SMEs, in the context of a joint European effort to revitalize the blocked credit channel to SMEs, stimulate economic growth and counter fragmentation of the internal market regarding SMEs access to credit.
(4)
One part of this response is to open specific windows within financial instruments set up at Union level under Regulation (EU) No 1287/2013 of the European Parliament and of the Council of 11 December 2013 establishing a Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (COSME) (2014 — 2020) and repealing Decision No 1639/2006/EC
as well as Regulation (EU) No 1291/2013 of the European Parliament and of the Council of 11 December 2013 establishing Horizon 2020 — the Framework Programme for Research and Innovation (2014-2020) and repealing Decision No 1982/2006/EC
.
(5)
Since Article 17(2) of Regulation (EU) No 1287/2013 (COSME) and Articles 20 and 21) of Regulation (EU) No 1291/2013 establishing Horizon 2020 explicitly seek to ensure complementarity and synergies with the European Structural and Investment Funds (ESI Funds), another part of the response is to allow Member States to use the European Regional Development Fund (ERDF) and the European Agricultural Fund for Rural Development (EAFRD) in order to provide a financial contribution to these financial instruments set up at Union level under Article 39(2) of Regulation (EU) No 1303/2013.
(6)
These financial instruments set up at Union level are managed indirectly by the Commission with implementation tasks entrusted to the EIB or the EIF pursuant to Article 58(1)(c)(iii) and Article 139(4) of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002
, in respect of uncapped guarantees and securitisation financial instruments in favour of SMEs. To that end, the Commission has to conclude delegation agreements with the EIB or the European Investment Fund (EIF).
(7)
Where a Member State avails itself of the possibility to provide a financial contribution from the ERDF and EAFRD resources to the financial instruments set up at Union level, Article 39(4)(c) of Regulation (EU) No 1303/2013 requires the participating Member States to conclude a funding agreement with the EIB or the EIF.
(8)
The financial instruments set up at Union level can only deliver the desired fast response if their functioning respects two conditions. Firstly, uniform conditions and equal treatment for, and among, participating Member States in the utilisation of the ERDF and EAFRD resources must be ensured. Secondly, the conditions for the contribution of ERDF and EAFRD resources pursuant to any individual funding agreement to be entered into by participating Member States and the EIB or the EIF and the conditions contained in the delegation agreements regarding other sources under COSME and Horizon 2020 must be consistent. A model of the funding agreement, available to both, the participating Member States and the EIB or the EIF, is the best way to ensure the compliance with these conditions. It is therefore necessary to lay down a model of the funding agreement.
(9)
In order to ensure an efficient deployment of concerned ERDF and EAFRD resources, the model of the funding agreement should include, inter alia, tasks and obligations of the EIB or the EIF such as remuneration, a minimum leverage to be achieved at clearly defined milestones, conditions for the creation of new debt finance to the benefit of the SMEs, provisions relating to non-eligible activities and exclusion criteria, a schedule of ERDF and EAFRD payments to the financial instruments, penalties in the event of non-performance by the concerned financial intermediaries, provisions on the selection of the financial intermediaries, provisions on monitoring, reporting, auditing and visibility of the financial instruments and conditions for termination of the agreement.
(10)
In order to allow for the prompt application of the measures provided for in this Decision, this Decision should enter into force on the day following that of its publication in the
Official Journal of the European Union
.
(11)
The measures provided for in this Decision are in accordance with the opinion of the Coordination Committee for the European Structural and Investment Funds established by Article 150(1) of Regulation (EU) No 1303/2013,
HAS ADOPTED THIS DECISION:
OJ L 347, 20.12.2013, p. 320.
OJ L 176, 27.6.2013, p. 338.
OJ L 176, 27.6.2013, p. 1.
Commission Staff Working Document SWD(2013) 517 final.
OJ L 347, 20.12.2013, p. 33.
OJ L 347, 20.12.2013, p. 104.
OJ L 298, 26.10.2012, p. 1.
Decision revoked in part (31.12.2020) by The European Structural and Investment Funds Common Provisions Rules etc. (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/783), reg. 10(c); 2020 c. 1, Sch. 5 para. 1(1)