The guarantee agreement targets small and medium-sized enterprises that often face rigid credit constraints when scaling operations. By providing capital for facility expansion, technology development, and working capital, the initiative allows these suppliers to fulfill large contracts without stalling due to upfront costs. This funding is part of a broader €3 billion pan-European EIB program designed to integrate private banking capacity with public risk mitigation.
Scaling Strategic Industrial Capacity
Beyond immediate production needs, the financing supports dual-use technologies applicable to both military and civilian sectors. Gemma Feliciani, EIB Director of Financial Institutions, noted that the partnership strengthens European strategic autonomy by ensuring smaller, innovative players remain competitive. Borja Oyarzabal, Global Head of Commercial Banking at Santander, emphasized that this collaboration directly addresses the capital hurdles hindering industrial resilience. The EIB Group has rapidly scaled its sectoral commitment, with total investments in security and defence reaching €4 billion in 2025 and projected to exceed €5 billion in 2026.
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