The European Investment Fund, based in Luxembourg, was founded in 1994 as a European Association organization for the provision of loans to small and medium-sized businesses. It does not directly lend money to SMEs; rather, it collaborates with business banks and assets to provide funding. The EIF, as it is often known, provides financial assistance to small and medium-sized businesses (SMEs). To do so, they build, establish, and deliver value and obligation monetary arrangements that are tailored to the needs of SMEs. Funding and credit guarantees are two of its most important commercial activities.