Lombardy Launches New Funding Program to Support SMEs in Recognized Supply Chains
A new program aimed at strengthening the financial stability of small- and medium-sized enterprises (SMEs) in Lombardy has been launched, providing crucial support for businesses operating within recognized supply chains.
€20 Million in Backing Available for Credit Lines
The program boasts a €20 million endowment, sourced from the CreditoOra and CreditoOra Evolution programs. This funding will unlock credit lines of up to €200 million, guaranteed by various financial institutions within the established limits of the Guarantee Fund.
Eligibility Criteria for Participating SMEs
This initiative is specifically targeted at SMEs, as defined in Annex 1 of Regulation (EU) no. 651/2014. To qualify, businesses must meet specific criteria:
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Official incorporation and active status in the Company Register, with operational headquarters located in Lombardy.
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Membership in a supply chain officially recognized by the Lombardy Region as per Decree no. 5899/2022 and subsequent amendments.
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Falling within risk classifications ranging from 1 to 10, as determined by the Region’s Credit Scoring methodology.
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Absence of any grounds for disqualification as outlined in Legislative Decree 159/2011.
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Valid insurance contracts in place to cover damages as stipulated by current legislation.
A Free Regional Guarantee for Enhanced Financial Confidence
The support package takes the form of a free regional guarantee, effectively safeguarding against potential failures in credit line repayments. Key features of this guarantee include:
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Coverage of 80% of the financing institution’s exposure towards the beneficiary SME, capped at 10% of each financier’s portfolio value.
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Validity for both current and future credit assignments, including bulk transactions. This is contingent upon notification and acceptance from debtors operating within the same recognized supply chain.
Eligible credit lines must adhere to strengthens the following requirements:
- Minimum amount: €100,000
- Maximum amount: €1,000,000
- Maximum warranty duration: 24 months from the contract signing date.
In the event of a debtor’s nonpayment, the guarantee can be activated within 12 months of the risk event.
Application Process and Timeline
Applications for this vital financial support measure will be processed counter-based. The official launch date is January 14, 2025. Eligible businesses are encouraged to submit their applications promptly to take advantage of this opportunity.
What are the specific requirements for SMEs to participate in this program?
## Lombardy Bolsters SMEs with €20 Million Funding Boost
**Interviewer:** Welcome to the program. Today, we’re discussing a new initiative to support small and medium-sized enterprises (SMEs) in Lombardy. Our guest is Alex Reed, an expert on regional economic development. Alex Reed, can you tell us about this exciting new program?
**Alex Reed:** Absolutely! Lombardy has just launched a program aimed at bolstering the financial stability of SMEs within recognized supply chains. This is significant because SMEs are the backbone of our economy, and they often face challenges accessing capital.
**Interviewer:** What makes this program unique?
**Alex Reed:** Firstly, it provides €20 million in backing, sourced from the CreditoOra and CreditoOra Evolution programs [[1](https://www.investinlombardy.com/en/reports/general-reports/incentives-and-funding/booklet-incentivi-and-funding.pdf)]. This funding will unlock credit lines of up to €200 million, guaranteed by various financial institutions.
**Interviewer:** What are the eligibility criteria for SMEs to participate?
**Alex Reed:** The program is open to SMEs as defined in Annex 1 of Regulation (EU) no. 651/2014. Businesses need to be officially incorporated and active in the Company Register, with their operational headquarters located in Lombardy. Additionally, they need to be members of recognized supply chains.
**Interviewer:** This sounds like a significant opportunity for Lombardy’s SMEs. What impact do you foresee?
**Alex Reed:** I believe this program will provide much-needed financial support, allowing SMEs to invest in growth, create jobs, and contribute even more significantly to our regional economy.
**Interviewer:** Thank you for sharing your insights, Alex Reed. This program is certainly something to watch closely.
