In recent days, the press has widely covered an important regulatory update: the extension of the Italian Public Guarantee for SMEs (Fondo di Garanzia per le PMI) to include crowdfunding and social lending transactions, pursuant to a decree from the Ministry of Enterprises and Made in Italy (MIMIT) and the Ministry of Economy and Finance (MEF) that is about to be published in the Official Gazette.
This marks a potentially significant development for the industry, as it introduces, under specific conditions, a form of public coverage for financing instruments made available through authorized crowdfunding platforms.
But what does it actually mean for investors? And most importantly, will all projects be able to benefit from it?
Let’s clarify the key points.
What the SME Guarantee Fund is
The SME Guarantee Fund is a public support mechanism established under Italian law (Law 662/1996) to help small and medium-sized enterprises access credit. Traditionally, it guarantees a portion of loans extended by banks or financial intermediaries, covering part of the amount in case of default and thereby reducing risk for the lender.
The new development is that this mechanism may now be extended to certain crowdfunding transactions and, in some cases, social lending.
What the extension to crowdfunding includes
According to current reports, public guarantee can cover up to 80% of the invested amount, but only for selected crowdfunding operations conducted through European-regulated platforms under Regulation (EU) 2020/1503 (ECSP).
It is essential to understand a few key aspects:
The guarantee is not automatic.
It does not apply indiscriminately to all operations published on a platform.
The request for access to the guarantee is submitted by the crowdfunding service provider (i.e., the platform), not by the individual investor.
The guarantee is granted in favor of investors, but can only be activated if the requirements set by the Fund are met and the operation is approved.
To put it another way: it is not a “system-wide coverage” for all crowdfunding, but a selective tool.
How it would work for an investor
If a project were eligible for the Fund's guarantee:
The issuing company would have to fall within the definition of an SME and meet the Fund's eligibility requirements.
The platform would have to submit a request for access to the guarantee.
The Fund, through its manager (Mediocredito Centrale), would decide on the admission.
Only after approval would the operation be classified as assisted by a public guarantee.
In the event of subsequent default by the company (according to the conditions set out), the Fund would intervene by covering up to 80% of the guaranteed amount.
It is important to note that:
The guarantee does not eliminate investment risk.
It does not cover 100% of the capital.
It is not automatically activated at the first sign of delay.
It is subject to compliance with specific procedures and conditions.
It therefore represents a partial mitigation of risk, not a transformation of the investment into a “risk-free” instrument.
Not all projects will be covered
This is the key point for investors: not every crowdfunding offer on a platform will qualify for public guarantee coverage.
Eligibility depends on multiple factors, such as:
Whether the issuing company qualifies as an eligible SME under the Fund’s rules.
The economic and financial situation of the issuing company.
Compliance with the Fund’s specific parameters and procedural requirements.
The type of financial instrument or transaction.
Availability of capacity (plafond) within the Fund.
In addition, the platform will have to assess on a case-by-case basis whether to request the guarantee and whether the operation has the appropriate characteristics for the preliminary investigation.
As a result, there may be projects published on Walliance that:
do not require the guarantee,
are not eligible for the guarantee,
or are not approved by the Fund.
The presence or absence of the guarantee will therefore be explicitly indicated in the offer documentation.
What this means for the market
The extension of the public guarantee to crowdfunding represents institutional recognition of the now structural role of this tool in business financing.
It can help strengthen confidence in the sector and broaden the pool of interested investors.
However, it does not replace investment analysis; the evaluation of the business plan, the promoter's track record, the structure of the operation, and the risks remain central.
Walliance's role
As an authorized European crowdfunding service provider under ECSP, Walliance may, for eligible operations and where conditions are met, initiate the process of accessing the SME Guarantee Fund on behalf of specific offerings.
However, the platform’s objective continues to be offering investors transparent and fully informed investment tools in the real economy, not risk-free products
One fundamental clarification
The public guarantee:
Does not remove the possibility of losing money.
Does not automatically apply to all offerings.
Doesn’t replace diversification or proper due diligence.
It represents an additional risk mitigation tool, applicable only to certain operations that meet stringent regulatory criteria.
For this reason, each investment must continue to be carefully evaluated, consistent with its risk profile and with an appropriate diversification strategy.