EU COHESION POLICY SUPPORTS THE SMEs
ACCESS TO FINANCE
Barcelona, March 14 th 2014
Paolo Zaggia
Finlombarda S.p.a. - Finanziaria per lo sviluppo della Lombardia
FINLOMBARDA’S MISSION AND
REGIONAL CONTEXT
2
FINLOMBARDA Spa – The mission (1/2)
 Established in 1971, is a public company fullyowned
by
Lombardy
Region
with
headquarter in Milan (Italy).
 Its mission is to help and promote the
development of the regional economy.
 Since 1998, is a financial company entered in the special list referred
in Art.107 of the Consolidated Law on Banking, and subject to the
supervision of the Bank of Italy.
 Manages dedicated regional and EU funds, provides consultancy
services primarily to regional government, through the promotion
of innovative financial solution to attract private capital in the
financing of publicly-sponsored development projects and to
promote the competitiveness, the growth, the innovation, the cooperation and
the internationalization of Lombardy’s
entrepreneurship.
3
FINLOMBARDA Spa – The mission (2/2)
 Facilitates the efficiency of the public payments system and it
encourages the simplification in the local public system.
 Supports environmental sustainability and energy efficiency through
innovative technological tools.
Evolution
Regional Programme of Development of
the X Legislation 2013-2018
D.c.r. n. X/78/2013
From Regional Financial Institution
to Public Bank
4
REGIONE LOMBARDIA - the context (1/2)
820,000 registered
companies
STRENGHTS



99% are
MSMEs
High economic production
Diversification of businesses
Better quality of education
3% of the UE
GDP
10 M of
inhabitants
1.2% of GDP
Invested in R&D
22% of the italian
workforce in R&D
26% of the total
investments
WEAKNESSES




High fragmentation of MSMEs undercapitalized
Excess of «informal» Innovation
Low turnover of the entrepreneurial system
Few high knowledge-intensity services (Vs. UE)
REGIONE LOMBARDIA - the context (2/2)
Some additional data and new approach
820,000 Enterprises
Distributed as follows:
 Manufacturing: 15.6%
 Construction: 16.1%
 Agriculture 7.4%
 Trade, other services: 54.3%
 Other public services: 6.6%
12,000 Cooperatives
1,600 Social Cooperatives (Type A,B)
224 Banks
6,197 Banks branches
33 Confidi
369,000 SMEs associated
Weight for manufacturing
sector : 50-63% in terms of
operations and
associated.
7 Specialization Areas (S3)
Open Innovation
 Aerospace
 Creative cultural industries
 Agribusiness  Health industry
 Eco-industry  Advanced manufacturing
 Sustainable Mobility
Pilot project to create an
exchange platform for actors
of “innovation ecosystems”
6
ROLE OF EUROPEAN FUNDS
IN FINANCIAL INSTRUMENTS
7
EUROPEAN FUNDS IN FINANCIAL INSTRUMENTS
AN ENCOUNTER IN “MARKET FAILURE AREAS” BETWEEN TWO WORLDS
THAT RESPOND TO DIFFERENT RULES
1. EUROPEAN FUNDS
RULES:
2. FINANCIAL MARKETS
STATE AID,
RULES:
BASILEA III
STABILITY PACT
RESOURCES: 1% GDP
FI
1.000 B€ in 7 years
MARKET FAILURE AREA
?
+ PRIVATE
RESOURCES
of which 5% to FI
IN FINANCIAL MARKETPLACES MECHANISM
IN PUBLIC ADIMINISTRATION PLANNING
NEED OF
CLEAR RULES FROM THE BEGINNING OF PROGRAMMING PERIOD
FLEXIBILITY OF GOVERNANCE TO FACILITATE «HORIZONTAL SUBSIDIARITY»
EUROPEAN FUNDS IN FINANCIAL MARKETPLACES
FINANCIAL MARKETPLACE MECHANISM
EUROPEAN
FUNDS
Private
Savings
Investments
Economic
Development
Financial
Sector
SERVICES
KNOWNLEDGE
CAPACITY BUILDING
CENTRE
FOR BOTH SIDES: PA and PRIVATE SECTOR
FIs IN PUBLIC PLANNING FOR VIRTUOUS FINANCE.
FINLOMBARDA 2000-2013 EXPERIENCE
TOWARDS 2014-2020
10
SMEs FINANCIAL INSTRUMENTS WITH EU FUNDS 2000-2013
III
IV
Investments
Jeremie
FESR
FRIM FESR
MIL
Jeremie
FSE
Working Capital
Measure 1.4
Credito
Adesso
I
II
Start UP
Development
Legend:
The diameter corresponds to the amount of
resources allocated by way of initial funding (M€)
2000-2006
2007-2013
BEI
11
FROM 2000-2013 TOWARDS 2014-2020
Interventions
Period
EU Funds
Beneficiaries
Financial
Instruments
Loan Guarantee Grants
2000-2006
259M€
ERDF
EELL
Invest.
Innov. Working Infrastr
Intern. Capital
.


5,2
Sistema Garanzie



2,3
Fondo Garanzie SMEs



1,5
Fondo Infrastr. ob.2




Total SMEs
ERDF
2007-2013
139 M€
ESF
270M€
245
8,8
Made in Lombardy

Jeremie FESR

Fondo FRIM-FESR

Jeremie FSE





Revolving * Fondo Infrastr. ob.2


IEB Loans * Credito Adesso


Total SMEs
2000-2006
ERDF
M€

Accesso al credito

SMEs
GI
Coop.
OP
budget
Subject of Intervention




33



20




66

20



50
220
359
(*) EU Funds not in the OP
2007-2013
ERDF, ESF, IEB
2014-2020
ERDF, ESF, EARDF, IEB
PROGRAMMING PERIOD 2007-2013
OPERATIVE PROGRAM (ERDF)
Axis: Innovation and Knowledge Economy
INVESTMENTS
FOR
Guarantee Fund covering first losses of a
Portfolio of 500 Meuro of medium-long term
financing
1,000 M€
(expected in pre-crisis)
Medium-long term financing to support innovation
and research investments
100 M€
500 M€
(expected at 2015)
Fund of funds providing resources to Confidi in
order to issue guarantees for financing
innovative investments
13
TOWARDS 2014-2020
 Experience has confirmed that a correct use of Financial Instruments for
the PA in the so-called “market failure” areas can lead to the activation
of programming processes with satisfactory results despite the ongoing crisis.
 From one hand, it is important to select the suitable Financial
Intermediaries (according to their experience, the relevant presence on
territory and their high technical financial expertise targeted to the
specific sector) keeping flexibility, preferring forms of agreements – eg.
“FRIM FESR” - rather than tenders – eg. “MIL” (ANNEX 1), and in general
opting for combined instruments (ANNEX 3).
 From the other hand it is of vital importance to act into areas/sector
where is possible to find a system of relations already existing –
Jeremie ESF (ANNEX 2).
TOWARDS 2014-2020
IV
III
Investments
Growth and
capitalization
Start Up Innovative
Entrepreneurship
and development
Capitalization of
experiences
(ANNEXE 2): more
flexibility/less
tender
Internationalization
Working capital
SMEs Investments in
Innovation and Research
Opening at new
regulations (Risk,
PPP, WC)
Synergies between
ESI Funds and other
Funds too (EIB, EIF,
RL, …)
Working Capital
I
II
Start Up
Development
BOZZA PER LA DISCUSSIONE
NEW APPROACH: SMART SPECIALISATION
STRATEGY
NEW NEEDS
TRANSFORMING PROCESS
SPECIALIZATION AREAS
1.
2.
3.
4.
5.
6.
7.
Aerospace
Agribusiness
Eco-industry
Creative and cultural industries
Health industry
Advanced manufacturing
Sustainable Mobility
INSTRUMENTS
SOCIAL &
ENVIRONMENTAL
CHANGE
Cluster/network/business network/
financial instruments/ KETs/ Enabling
factors/cross-fertilization/open
innovation/ industry–university
collaboration/ pre-commercial
procurement/ Digital Agenda
IMPACT ON TRADITIONAL
INDUSTRIES
The goal is to seize the development opportunities focusing on Emerging Industries,
with high knowledge content, which reconfigure the value chain by offering new
products and services by exploiting the potential of new technologies.
16
Thanks for the attention
[email protected]
ANNEXES
18
ANNEX 1
FI MANAGEMENT’S MODELS




MADE IN LOMBARDY
JEREMIE FESR
FRIM FESR
JEREMIE FSE
19
«MADE IN LOMBARDY»
REGIONE
LOMBARDIA
(AdG POR FESR)
incarica
costituisce
Finlombarda
GESTORE
gestisce
Selezione e convenzione
Fondo di Garanzia
33 ML €
Garantisce le
prime perdite del
portafoglio.
Copertura max
80% di ogni
singolo intervento
finanziario
Fondi Propri 100 M€
BNL
400 M€
Finanziamenti
chirografari, ibridi
subordinati
80
%
20%
DESTINATARI
20
«JEREMIE FESR»
REGIONE
LOMBARDIA
(AdG POR FESR)
incarica
Finlombarda
GESTORE
costituisce
FONDO DI
GARANZIA
JEREMIE
gestisce
20 M€
seleziona
(7 lotti finanziari in 2
tranche)
CONFIDI DI
PRIMO GRADO
cofinanzia
cofinanzia
Portafoglio Fondo
garanzia JEREMIE
4 M€
Convenzione
Banche
convenzionate
con I Confidi
Garanzia a
copertura
(fino all’80%)
delle eventuali
perdite sulle
operazioni
Finanziamenti
DESTINATARI
FINALI (MPMI)
21
«FRIM FESR»
Richiesta di
sottoscrizione accordo
incarica
REGIONE
LOMBARDIA
(AdG)
Finlombarda
GESTORE
costituisce
gestisce
Banche
convenzionate
Cofinanzia
(40%)
FRIM FESR (POR
FESR 2007-2013)
Cofinanzia (60%)
35 M€
Finanzia
SOTTOMISURA 2
SOTTOMISURA 1
Applicazione
industriale dei risultati
della richiesta
Innovazione di
processo e di
prodotto
Finanziamenti
Finanziamenti
DESTINATARI
DESTINATARI
22
FONDO «JEREMIE FSE»
incarica
seleziona
Finlombarda
GESTORE
REGIONE
LOMBARDIA
(AdG POR FSE)
costituisce
gestisce
FONDO JEREMIE
(POR FSE 2007-2013)
19 M€
accredita
INTERMEDIARI
FINANZIARI
50 % Componente
Ammortizing:
finanziamento oneroso di
durata pari a 5 anni, a tasso
fisso, rimborsabile con
ammortamento su base
mensile ed erogato
dall’intermediario bancario
a valere su risorse
finanziarie proprie
50 % Componente Bullet:
finanziamento a tasso zero,
di durata pari a 5 anni,
rimborsabile in un'unica
soluzione alla scadenza,
erogato dall’intermediario
bancario a valere sulle
risorse del Lotto Finanziario.
erogano
Garantisce la
componente
Ammortizing
entro il limite
massimo del
10% del valore
del Lotto
Finanziario
MICROCREDITI
BENEFICIARI
sottoscrivono
e versano
CAPITALE SOCIALE
COOPERATIVE
23
ANNEX 2
CASE HISTORY: «JEREMIE FSE»
24
DESCRIPTION (1/3)
 In the 2007-2013 programming period, Jeremie ESF is configured as
an experimental initiative within Axis 3 «Social inclusion» of the ESF
OP of the Lombardy Region, with a total budget of 20 M € (almost
30% of the resources of the Axis).
 At the time the Fund was created (July 24, 2008), Lombardy Region
was the first region in Europe to implement interventions of financial
engineering with the contribution of the European Social Fund (ESF).
 The initiative is directed to Social Cooperatives of type A and B and to
work production cooperatives (at least 30% of disadvantaged
workers), financing interventions of Capitalization funded through
micro-credits of 4,000 €, granted to shareholders, who undertake to
pay new equity shares in their own cooperative (maximum of 50
Members for Cooperative for a maximum of € 200,000 of share
capital).
DESCRIPTION (2/3)
 The funds received will be refunded by the shareholders of the
cooperatives in 60 months (in case the shareholder remains for 5 years,
half of them cannot be refunded).
 The managing authority of the Fund of ESF Jeremie Funds is
Finlombarda, the financial in house company of Lombardy Region, who
has defined the investments policies and selected the financial
intermediaries (IF), consistently with guidelines formulated by the
Steering Committee of the Fund through regional majority.
 The IF have been selected through an international public tender,
considering technical-qualitative and financial elements.
 The allocation of the Fund has been managed for Financial Lots (7) to
acquire the best conditions for the access of the final recipients to
funding (in terms of cost, time and procedures), to offer the opportunity
to the cooperatives to choose the IF and reach the widest possible
dissemination of the initiative on the territory.
DESCRIPTION (3/3)
The timing which mark the entire lyfe cycle of the instrument (which goes beyond the
natural expiration of the OP):
1) Programming: from the creation of the Fund by the Regional Administration to
the publication in GUCE, GU and BURL of the public call for tenders for the IF
selection (9 months);
2) Implementation:
 from the publication of the call for tenders to the award of the financial lots and
contractual arrangements of FI for each lot (about 6 months) to the end of
disbursement by the FI (within 12 months);
 from the contractual arrangements of FI to the end of disbursements by the FI
(within 12 months)
3) Duration of the micro – credit and its warranty (60 months): from the transfer to
the partner and concomitant in the share capital of the cooperative until the
complete repayment by the shareholder of the financing and the loan received.
RESULTS ACHIEVED
•
•
•
•
•
•
Financial intermediaries selected: 5
Applications received: 9,338
Contractual agreements and funded partners: 7,820
Disadvantaged people funded: 4,254
of which: 1,686 men and 2,569 women
Disbursed loans: 31.3 M €
of which: 15.65 M € paid by the ESF and 15.65 M € paid by the financial
intermediaries
Cooperatives subject to recapitalization: 507
of which: 269 cooperatives addressed to the management of health,
social and educational services; 176 cooperatives that carry out activities
aimed at providing employment to disadvantaged people;
62 cooperatives of production and work
EVALUATION REPORT (2012)
“JEREMIE FSE”: functioning and first results
“Jeremie has mobilized a large audience of members of the cooperatives that
could participate in (31% of the total members, but more than 50% if we take
into account for the co-operatives with a membership of more than 50
members, the limit was set at 50 in any case)”.
“The rate of mobilization was greater in the “young cooperatives” and in the
smaller ones, highlighting a “correct” use of the instrument, most used by
those who in theory had the greatest need for consolidation and growth”.
“The financial resources obtained through Jeremie have been mostly used for
the purpose of development and/or to initiate new lines of business/ new
services and to a lesser degree to meet current and short term difficulties. The
40% of the cooperatives stated that the greatest impact has been on the
possibility of making investments, while 26% say that they have had the
instruments to overcome the crisis”.
“Jeremie has been an important vehicle for greater awareness and
empowerment of members bringing all members of the cooperatives to reflect
on financial problems and possible exit strategies from the crisis by
strenghtening existing bonds of trust and thus showing a Value Added of the
instrument in terms of social cohesion, particularly for the benefit of
disadvantaged people”.
ANNEX 3
FINANCIAL INSTRUMENTS AT EU LEVEL
30
FIN-EN Project
Sharing experiences on financial instruments for SMEs (www.fin-en.eu)
PROJECT OBJECTIVE
Individuating good practices and simplification models
useful to a more efficient financial instruments
management in 2014-2020 programming period
PARTNERSHIP
Finlombarda, Lead partner with the endorsement of
Lombardy Region, and 12 partners from 13 EU countries
(BE, DK, FR, DE, GR, HU, IT, LT, LI, PT, SI, ES, UK) managing
in 2007-2013 financial instruments for around 3,5Md€
6
5
4
3
2
1
16 Combinato
13 Equity
6 Garanzia
13 EQUITY - 29%
16 COMBINED – 36%
10 Prestiti
10 LOAN – 22%
0
6 GUARANTEE – 13%
31

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