EU funds could be your next growth engine – here’s how

Billions of euros are available to Danish SMEs – and the future brings even better opportunities

Access to capital remains one of the biggest barriers to growth among Danish small and medium-sized enterprises (SMEs). Regardless of industry or geography, far too many strong growth initiatives never materialize because financing is either too expensive, too slow – or simply not available. That slows down not only the company itself but also competitiveness and job creation in Denmark.

But solutions do exist. And one of the most overlooked paths runs through the EU.

EU financing: More than research funding

When people think of EU funds, most imagine complicated grant schemes aimed at researchers and universities. But that picture is outdated. Today, the EU offers a much broader financing landscape that Danish SMEs can also benefit from – whether it’s about green transition, digitalization, exports, or skills development.

Through programs like InvestEU, the EU provides financing via banks and financial partners. This often takes the form of loans, guarantees, or equity, where the EU assumes part of the risk – making it possible for banks like kompasbank to offer attractive terms to businesses that would otherwise struggle to access capital.

DKK 1 billion targeted at Danish SMEs

A concrete example is kompasbank’s agreement with the European Investment Fund (EIF). In 2024, we secured a guarantee facility of DKK 1.3 billion, enabling us to offer more flexible and targeted financing solutions to Danish SMEs – particularly within green transition, skills development, and growth initiatives.

The guarantees are being used continuously, and today there are still funds available corresponding to a total financing capacity of DKK 1 billion. This means we can continue to help hundreds of companies realize growth plans that would otherwise have been postponed or abandoned without EU support.

More funds and easier access from 2028

From 2028, it will become even easier for SMEs to access EU financing. The EU’s upcoming European Competitiveness Fund will consolidate 14 different support schemes into one large fund with a budget of EUR 409 billion. The aim is to make the road to capital much simpler for companies – especially SMEs.

The fund will provide financing within four main areas:

• Green transition

• Digitalization

• Health, biotech, agriculture, and bioeconomy

• Defense and space

In short: the EU wants to remove bureaucracy and strengthen access to financing for the very companies driving innovation, growth, and the green transition in Europe.

It is also a response to one of Europe’s greatest challenges: we excel at research but are too weak at turning new technologies into market-ready solutions. With this new budget, there will be significantly more funds for scaling, testing, and commercialization – and processes will become simpler.

Why is the EU doing this? And what does it mean for you?

EU financing programs have one overarching goal: to direct capital where it makes the greatest difference. To the companies willing to invest in innovation, digitalization, or green transition – but who face barriers when they turn to traditional financing.

That’s why the EU provides guarantees that reduce the risk for banks. This enables banks like kompasbank to offer loans on more flexible and attractive terms to companies with strong potential – but which don’t fit neatly into the traditional banking model.

For you as a CEO or owner-manager, this means you can secure financing for your growth plans – faster, more easily, and on better terms.

A landscape of opportunities

Kompasbank’s EIF agreement is only one route to EU funds. A wide range of programs exists to support everything from green technology and digitalization to exports and innovation:

• Horizon Europe: For developing new technology and innovation.

• Innovation Fund: For commercial climate projects and technologies.

• InvestEU via EIF or EIFO: For companies with growth potential in green transition and digitalization.

• COSME, LIFE, and Interreg: For broader development and cooperation projects.

The key is finding the program that matches your ambitions and stage of business.

Getting started

The path to EU financing rarely begins with an application. It begins with asking the right questions:

• Where do we want our business to be in 2–5 years?

• What investments will it take?

• Where does it make sense to bring in external financing?

At kompasbank, we see it as part of our role to help SMEs turn potential into tangible growth. Our EIF guarantees are one of the tools we use to unlock new opportunities for ambitious companies.

Find the right opportunities – also through kompasbank

If you want an overview of the concrete opportunities in Denmark, the EU has created a public database of financial partners that offer EU-backed financing – including kompasbank.

You can find us and other relevant partners here. The site provides a useful first overview of how to move forward – and which partners can help you realize your plans.

Each year, the EU supports more than 200,000 businesses through business loans, microfinancing, guarantees, and venture capital. Explore all EU support programs here.

Contact us

Do you have ambitions that require financing? Want to learn more about how we can help?

Then reach out to us here. We are here to help you find the way.