The European Investment Fund, established in 1994, is a European Union agency for the provision of finance to SMEs (small and medium-sized enterprises). It does not lend money to SMEs directly; rather it provides finance through private banks. Its main operations are in the areas of venture capital and guaranteeing loans. Its shareholders are: the European Investment Bank (approx. 60%); the European Communities, represented by the European Commission (approx. 30%); and several privately-owned EU financial institutions (approx. 10%).