First EIB-backed SME defence loan issued in France

Banque Populaire Alsace Lorraine Champagne (BPALC), in partnership with the European Investment Bank (EIB), has issued the first loan in France under a major new financing programme aimed at boosting small and medium-sized enterprises (SMEs) in the defence sector.

The €1 million loan has been granted to CIMULEC Groupe, a Moselle-based company specialising in high-value printed circuit boards (PCBs) used in aeronautics, defence, and space applications.

The financing marks the first operation under a €300 million EIB-backed facility provided to Groupe BPCE, designed to improve access to funding for SMEs operating in strategic defence-related industries.

The seven-year loan will support CIMULEC Groupe’s working capital needs, enabling it to respond to growing demand from defence customers.

CIMULEC, which employs 220 people and generates annual revenues of €28 million, operates three industrial sites in France and supplies major contractors including Thales, Safran and Airbus Defence and Space. Its products are used in applications ranging from embedded software and telecommunications satellites to military systems.

Laurent Bodin, CEO of CIMULEC Groupe, said the funding would help the company scale operations to meet increased demand.

“To satisfy strong business growth and meet the sizeable increase in demand from our customers, the loan granted by BPALC, with the backing of the EIB, shows our partners’ determination… to support the development of the defence industry,” he said.

Dominique Garnier, CEO of Banque Populaire Alsace Lorraine Champagne, said the deal reflects the bank’s commitment to strengthening competitiveness and innovation in a critical sector.

“Supporting a renowned key player such as CIMULEC Groupe, which contributes to French technological sovereignty, is at the very heart of what we do as a cooperative bank,” he said.

The bank has developed a strong regional presence, with dedicated business centres and specialised advisors supporting defence-sector SMEs across nine departments.

Ambroise Fayolle, Vice-President of the European Investment Bank responsible for operations in France, described the loan as a tangible outcome of the EIB’s expanded focus on security and defence.

“This financing… is a concrete example of support for the defence industrial and technological base, aimed at strengthening the European Union’s strategic autonomy,” he said.

In 2025 alone, the EIB Group invested €670 million in France in projects linked to security and defence, with the BPCE partnership forming a key component of that effort.