The European Investment Fund (EIF) has signed a guarantee agreement with UniCredit, which will allow the Italy-based banking group to provide €160 million ($170.8 million) to small and medium-sized enterprises (SMEs) in eight countries in Central and Eastern Europe (CEE). The agreement allows UniCredit to provide additional funding of €160 million for innovative companies through its banks in Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Slovakia, Hungary, Romania and Serbia. The banks in Bosnia and Serbia will benefit from the support of a guarantee provided by EIF and backed under Horizon 2020, the EU's Research and Innovation programme, while the guarantee agreements with the banks in Bulgaria, Croatia, the Czech Republic, Slovakia, Hungary and Romania will be backed by the Investment Plan for Europe. Companies developing products, processes or services that are innovative or focus on research and development as well as applicants, who in the last 24 months have registered at least one patent or have received an award for innovation from an European organization, are eligible for a loan under the programme. Under the agreement, UniCredit Bulbank will be able to provide a total of €15 million at preferential interest rates and reduced guarantee requirements. The maximum amount of a single loan under the scheme in Bulgaria will be €3.75 million, while the minimum is set at €25,000. The programme will have a duration of two years and can be extended by one year.