EBRD Small Business Impact Fund (SBIF): WB & EaP

SBIF impact: - 31 129 SMEs financed through direct, co-financed or indirect financing - 2 773 SMEs supported with EBRD business advice - 12 860 jobs created by SMEs supported with advice within a year of project completion - 72% of SMEs increased turnover within a year of advisory project completion - MEUR 464 in financing to SMEs including through local PFIs

The Small Business Impact Fund (SBIF) was launched in 2015 with the objective of facilitating cooperation that is more efficient, coordination and deployment of donor resources to support SME development across five pillars of activity: Pillar 1 - Indirect financing via partner financial institutions via the Financial Intermediaries Framework (FIF) Pillar 2 - Direct financing through the provision of equity, quasi-equity or debt under the Direct Finance Framework (DFF) Pillar 3 - Co-financing through the Risk Sharing Framework (RSF) Pillar 4 - Advisory support to SMEs, which includes local consultancy projects, international advisory projects, as well as sector and market development activities under the Advice for Small Businesses Programme (ASB) Pillar 5 - Policy dialogue supporting improved business environment for SMEs 2022 proved another challenging year for SMEs, with the devastating impact of the war on Ukraine. EBRD targeted SMEs affected by the war with a combination of technical assistance and financial support to access basic infrastructure and know-how, and through digital platforms like MEREZHA, to help them re-start their businesses. The EBRD also developed a number of programmes to address the spill-over effects of the conflict, from food security to refugee support. The SBIF played an integral role in the EBRDs crisis response delivery. The Fund has grown in size to EUR 126 million with fund utilisation at 88%. In 2022, the Fund attracted a record EUR 54 million in new contributions, with more than EUR 32 million going towards financing and advisory support to war-affected SMEs. As part of its assistance to SMEs in Ukraine, the EBRD launched a new Relocation Grant scheme to help SMEs with their relocation expenses and provide necessary know-how and assistance for their relocation to safer territories in the country. Beyond crisis response, the SBIF has focused throughout on resilience building, having mainstreamed the three strategic priorities of the EBRD digital, green, and inclusive growth into all new operations. In 2022, the first independent evaluation of the SBIFs impact was completed. Conducted by the independent consultant Steward Redqueen, the evaluation provided insights as well as recommendations to improve the effectiveness of financial and advisory instruments. The evaluation concluded that the SBIF is an essential tool to cope with crisis response given its collaborative structure with donors, process efficiency, and rapid deployment to the individuals and small businesses most in need. The last time Sida provided funding to the Fund was in 2020. In aggregate, Sida has provided approx MEUR 3 to the Fund to support initiatives under the Eastern Europe and South Caucasus and Western Balkans windows.