Armenia SME Finance and Advice Facility
The facility deploys EU funds blended with those provided by the EBRD and other investors to support Armenian SMEs. It improves access to finance for SMEs through a combination of investment projects and technical assistance, and a diversification of sources of finance, ultimately creating jobs, contributing to increased investment, capital market development and diversification of economic activity.
- To diversify the financing solutions currently available to SMEs in Armenia by creating infrastructure, capacity and supply of investment capital.
- To provide advisory services to SMEs in order to promote competitiveness and innovation and enable businesses to grow and to attract further investment.
The Facility provides SMEs with a diversity of financial solutions and technical advice through two components:
An SME Finance Component, including the creation of a private equity fund, expected to make investments in eligible Armenian SMEs over a five-year investment period.
- An SME advice component providing:
- Business advice to SMEs;
- Industry expertise and international best practice;
- Capacity building to achieve sustainable local SME networks.
Expected results by the end of the project include:
- Private equity fund:
- Euro equivalent of $20 million deployed to provide risk capital financing to eligible SMEs
- At least 75% of supported SMEs report an increase in turnover, at least 50% of supported SMEs report an increase in employment, and at least 25% of supported SMEs are outside Yerevan
- SME advice:
- At least 280 advisory projects are implemented with local consultants and international industry advisers
- At least €45 million net increase in aggregate turnover of assisted SMEs within a year of project completion
- At least 1,100 new jobs created within a year of project completion
- At least 12 trainings for local consultants to improve the quality of local business advisory services (at least 200 consultants trained)
- Round tables, seminars or workshops to disseminate best practices.