RCB Bank Ltd joins forces with the European Investment Bank (EIB) and the government of Cyprus to achieve viable growth for the Cyprus economy by supporting small and medium-sized enterprises in Cyprus. The EIB’s new scheme enables the provision of lending solutions characterized by a longer repayment period, a lower funding cost and favorable terms to SMEs.  

For additional information about EIB funding, please call RCB Telephone Banking.

Scheme beneficiaries

Beneficiaries are small and medium-sized enterprises (SMEs), with less than 250 employees and medium-capitalisation companies (MidCaps), with minimum 250 and less than 3.000 employees, which are located in the Republic of Cyprus. 

Loan amount

The amount of the EIB allocation may reach up to 100% of the loan provided by the Bank to the Final Beneficiary but may not exceed 12.5 mln euro in each case.

EIB funds may be used to support financing needs arising from the operational activities of the Final Beneficiary (i.e. revolving overdraft facilities).


From 2 to 12 years

Investment categories

The objective is to finance investments and expenditures aimed at developing and growing businesses through various projects, specifically: 

  • The purchase, renovation or extension of tangible assets other than land; 
  • Investment in intangible assets, i.e.: 
  1. Development, planning and financing costs during the construction phase of a tangible asset;
  2. R&D expenses (fees, development costs and gross salaries directly associated with the research, development, and innovation components of the activity); 
  3. Building up of distribution networks in domestic or other markets inside the EU (asset and/or trademark acquisition, operational costs and labour costs); 
  4. Medium and long term working capital needs; 
  5. Change of management (i.e. retirement of the previous owner) or staff-related enterprise transmission, allowing for a continuation in economic activity of the respective enterprise, subject to conditions and restrictions;
  6. VAT or other dues to the State are not financed.

Advantages of EIB funding

  • Attractive interest rates (fixed or floating) – the financial advantage of a minimum of 1.00% (one hundred basis points) per annum is provided to the respective Final Beneficiary; 
  • Long repayment period;
  • Grace period for repayment of principal.

Sectors and activities excluded from the scheme

Final Beneficiaries active in any sector are eligible except the following activities (not-exhaustive list): 

  • Activities targeting the production of weapons and ammunition, arms, military or police equipment and any “dual-use” items or infrastructures, and equipment or infrastructure which result in limiting people’s individual rights and freedom (i.e. prisons, detention centres of any form) or in violation of human rights; 
  • Activities targeting the production or facilitating the use of gambling and related equipment; 
  • Activities targeting tobacco manufacturing, processing, or specialist tobacco distribution, and activities facilitating the use of tobacco (e.g. “smoking halls”); 
  • Activities which give rise to environmental impacts that are not largely mitigated and/or compensated; 
  • Activities considered ethically or morally controversial or which are forbidden by national law, e.g. research on human cloning; 
  • The purchase of goodwill; the purchase of intangible assets that could lead to or enforce a strong market position of the Final Beneficiary (i.e. a market share of more than 20% of the relevant market); the purchase of licenses or rights for mineral resource exploitation; 
  • Activities constituting pure real estate development activity; 
  • Activities constituting pure financial transactions (such as the purchase of shares, or any other financial product);
  • Financial holding companies;
  • Activities involving live animals for experimental and scientific purposes insofar as compliance with the “Council of Europe’s Convention for the Protection of Vertebrate Animals used for Experimental and other Scientific Purposes” cannot be guaranteed.

“Jobs for Youth” Initiative

Part of the total amount of 140mln euro will be used for supporting the Beneficiaries which promote youth employment, in the context of the EIB’s "Jobs for Youth" Initiative. Additional 0.50% (fifty basis points) benefit per annum is provided to beneficiaries eligible for “Jobs for Youth” Initiative. 

In order to qualify for this initiative, a Final Beneficiary needs to fulfil at least one of the following three criteria: 

  • The Final Beneficiary confirms to have hired in the last 6 months and still employ at least 1 young person (5 for Midcap enterprises) (or plans to hire at least one young person (at least 5 for Midcap enterprises) in the coming 6 months), calculated from the signature date of the loan agreement signed with RCB Bank Ltd, or
  • The Final Beneficiary offers vocational training to young persons, or internships/training programs for young people, or  
  • The Final Beneficiary has an active cooperation agreement with a technical college or school or university to employ young persons (e.g. during summer internships). 

A "young person" is defined as a person of more than 15 and less than 27 years of age at the time when he/she benefits from the relevant event (employment, training or internship).