The European Funds for Modern Economy programme focuses support, among others, on economic development, innovation and R&D, digitization of enterprises. The programme will contribute to improving productivity and achieving positive structural change in the economy by supporting the improvement of innovativeness of enterprises (in particular SMEs). The Programme shall have the following specific objectives under PO1: 1. developing and strengthening research and innovation capacities and the use of advanced technologies; 2. reaping the benefits of digitalisation for citizens, businesses, research organisations and public institutions; 3. strengthening the sustainable growth and competitiveness of SMEs and job creation in SMEs, including through productive investment. The Guarantee Fund for Growth and Competitiveness of Enterprises (GF FENG) is part of specific objective 3 - Strengthening the sustainable growth and competitiveness of SMEs and job creation in SMEs, including through productive investments. The Guarantee Fund under the European Funds for Modern Economy Programme is a guarantee instrument addressed to micro, small and medium-sized enterprises as well as small mid-caps and mid-caps that want to obtain debt financing for the implementation of innovative investments. Support using portfolio guarantees will be implemented through lending banks providing investment and working capital loans. The guarantee will provide security for the repayment of investment loans granted to finance projects consisting of: 1. implementing new or improved product, process, organizational or marketing solutions identified at least at the company level; 2. implementing business models based on automation, robotization or digitization of enterprises. The guarantee will provide security for the repayment of revolving and non-renewable working capital loans intended for: 1. financing of working capital linked to capital expenditures in order to launch, maintain or increase production, trade and service activities of enterprises; 2. financing the day-to-day operations of enterprises, including ensuring financial liquidity. An entrepreneur who benefits from the guarantee will be able to receive additional support in the form of an interest rate subsidy (in the case of working capital loans) / capital subsidy (in the case of investment loans). The introduction of a guarantee instrument on the market with the possibility for the borrower to obtain an interest rate subsidy or a capital subsidy has many direct and indirect positive effects for the borrower. Financial flows to the borrower due to subsidies increase the propensity to apply to the bank for granting both a working capital loan and an investment loan. Thanks to the subsidies, the borrower is able to demonstrate an additional financial impact that reduces the risk of a liquidity deficit, which indirectly positively affects creditworthiness, resulting in a greater chance of a positive assessment of the loan application by the bank. It should be borne in mind that the guarantee is the most effective instrument to support the development of entrepreneurship, which stimulates private capital to the greatest extent to finance economic activities. Guarantee instruments have the highest leverage ratio understood as the ratio of the generated funding to the public funds involved. The assumption by the Guarantee Fund of part of the risk borne by financial institutions creates an incentive for private capital to engage in financing innovative projects.