Financial tools and funding opportunities from the European Investment Bank (EIB) should be redesigned as part of a forthcoming review, according to the European Association of Craft, Small and Medium-sized Enterprises (UEAPME).
Gerhard Huemer, director for economic and fiscal policy at the association, says the existing instruments are "often too large and too complicated to be helpful for SMEs".
Huemer recognises the key role of EIB funding in regional and local initiatives, but fears smaller companies are not benefiting from the schemes.
His remarks come on the day the EIB publishes its annual report (25 February) and in the wake of comments by EIB President Philippe Maystadt, who flagged regional funding as vital for the EU's economic recovery.
Maystadt told MEPs on Monday (22 February) that local projects will receive sufficient support despite the crisis to help them survive the challenging economic climate.
The EIB chief said he is confident that new regional support instruments can be introduced in the next financial regulation to help kick-start economies across the EU.
Speaking before the European Parliament's regional development committee, he also stressed that new microfinance facilities recently introduced for small enterprises need to be capitalised on to ensure spending quality.
MEPs called on the EIB to create innovative new tools to help regional development projects and pointed to the success of joint financial instruments in new member states.
Speaking to EurActiv, Dutch centre-right MEP Lambert Van Nistelrooij said, "as everyone knows, less money is available due to the crisis, so we need to find new ways for businesses and projects to access funding".
"I see this as a very good development, as it will allow us to use EIB instruments in the framework of regional funds," he added.
Existing mechanisms such as JASPERS and JEREMIE create opportunities for investments and loans that are badly needed in the current crisis, the MEP argued.
Van Nistelrooij believes these new examples of financial innovation should generate better outcomes in sustainable investment, though he cautioned that "these instruments aren't going to solve everything".
They are only effective when "there is good advice and assistance available at local level" to project leaders and entrepreneurs, he said.
"These instruments won't reach everyone," the MEP concluded, "but they are much more flexible than other funds, and the key point for me is that that they have a bigger impact in a period of crisis" than the standard ways of leveraging EU money.
