Eligibility criteria for innovation

(i) the company is an SME that intends to use the loan to invest in the production, development or implementation of new or significantly improved (i) products, processes or services, or (ii) production or delivery methods or (iii) innovations in organization or processes, including business models that are innovative and where there is a risk of technological, industrial or business failures, as evidenced by the assessment carried out by an external expert;

(ii) the company is a "fast growing company" that operates on the market for less than 12 years and has an average annual internal growth in employees or in a turnover of more than 20% per annum over a three-year period and has ten or more employees;

(iii) the company has been operating on the market for less than 7 years, and Research and Development (R & D) costs represent at least 5% of the total operating costs in at least one of the three years preceding the application of the credit for the company;

(iv) the company is an SME having significant potential for innovation or being an "intensive R & D enterprise", satisfying at least one of the following conditions:

(a) the annual costs for the Company's R & D are equal to or exceed 20% of the company's loan amount in accordance with the final mandatory financial statements of the final recipient, provided that the business plan of the company shows an increase in R & D costs, at least equal to the amount of the loan;

(b) the company undertakes to spend an amount equal to at least 80% of the loan amount for an R & D activity, as specified in its business plan, and the rest of the costs are necessary to enable such activities;

(c) the company formally received grants, loans or guarantees from European schemes to support R & D (for example, Horizon 2020 or FP7) or through their funding instruments (eg Joint Technology Initiatives or "Eurostar") or regional, national schemes to support research or innovation for the last thirty-six (36) months, provided that the loan does not cover the same expense;

(d) the company has received in the last twenty-four (24) months an R & D award or an innovation award given by an EU institution or body;

(e) the company has registered at least one technological right (such as a patent, a model used, a design right, a topography of a semiconductor product, an additional certificate for the protection of medicines or other products for which such certificates of supplementary protection may be obtained, a certificate for plant cultivation or software copyright) for the last twenty-four (24) months, and the purpose of the loan is to enable direct or indirect use of this technological right;

(f) the company is an SME at an early stage and has received an investment in the last twenty-four (24) months from a joint venture investor or a business angel who is a member of a business angel network; or such a joint venture investor or business angel is a shareholder in the company at the time of submitting the application for the loan application;

(g) the company seeks an investment for risk financing that on the basis of a business plan is ready to introduce a new product or entry on a geographic market, and is greater than 50% of its average annual turnover in the previous 5 years;

(h) the R & D cost of the company constitutes at least 10% of the total operating costs in at least one of the three years preceding the company’s loan application, or in the case of an enterprise without financial history, according to its current financial statements;

(i) the firm is a small or medium capitalization company and its R & D costs represent:

            (A) or at least 15% of the total operating costs in at least one of the three years preceding the company’s credit application;

             (B) or at least 10% of the total operating costs in the three years preceding the company’s credit application;

(j) the company has incurred R & D costs that qualify for the 36 months to the competent national or regional bodies or institutions for part of the general support measures approved by the European Commission intended to encourage companies to invest in R & D, provided i) such body or institution is independent of the Bank and the company; and ii) the loan involves incremental costs as specified in the business plan of the company; and iii) the loan does not cover the same eligible costs that are already supported by the above measures; or

(k) the company has been designated for the past 36 months as an innovative company by the EU or a national or regional institution or body, provided in each case

           (C) the appointment should be based on publicly available criteria whereby such criteria:

            • are not limited or otherwise prone to a particular industry or sector, and

             • reflect at least one of the eligibility criteria for innovation, other than the eligibility criteria referred to in point (iv) (d), or reflect the substance of at least one of these criteria, but not less stringent; and

            (D) the body or institution is independent of the Bank and the company; and

             (E) the final recipient transaction covers incremental costs as specified in the final recipient's business plan.

Prohibited sectors - Illegal economic activities

Any production, trade or other activity that is illegal under the laws or regulations of the domestic jurisdiction for such production, trade or activity ("Illegal economic activity"). Human cloning for reproductive purposes is considered an unlawful economic activity.

1. Tobacco and distilled alcoholic beverages

Manufacture and trade of tobacco and distilled alcoholic beverages and similar products.

2. Production and trade in weapons and ammunition

Financing the production and trade of weapons and ammunition of any kind. This limitation does not apply to the extent that such activities are part or accompanying explicit policies of the European Union.

3. Casinos

Casinos and equivalent enterprises.

4. Restrictions on the IT sector

Research, development or technical applications relating to electronic programs or data solutions that:

 (i) have for a specific purpose:

 (a) support for any activity included in the banned EIF sectors referred to in 1 to 4 (inclusive) above;

 (b) online games and online casinos; or

 (c) pornography,

or who:

 (ii) intended to provide for illegal:

 (a) entry into electronic data networks; or

 (b) downloading electronic data.

5. Restrictions in the life sciences sector

When providing support for funding research, development or technical applications related to

 (i) human cloning for research or therapeutic purposes; and

 (ii) genetically modified organisms ("GMOs")