The European Investment Fund (EIF), part of the EIB Group, has signed a €450 million guarantee agreement with MicroBank, CaixaBank’s social bank, to mobilise €750 million in financing for entrepreneurs, self-employed individuals and micro-enterprises across Spain.
This new guarantee agreement is backed by the InvestEU programme.
“The financing will be channelled through three products: small and medium-sized enterprise (SME) competitiveness, microfinance and social entrepreneurship,” said the EIF.
“These were created to address barriers often faced by entrepreneurs, micro-enterprises and self-employed people when seeking credit.”
The SME competitiveness guarantee will enable MicroBank to mobilise up to €500 million in financing to boost the competitiveness of small and medium-sized businesses.
The microfinance guarantee will allow €125 million to be mobilised in loans, helping to scale up or reinforce micro-enterprises, sustainable employment and inclusion in Spain, in particular for the most vulnerable in society.
“The social entrepreneurship guarantee will make it possible to mobilise up to €125 million,” said the EIF.
“This will finance projects undertaken by organisations and businesses with a social focus, and whose work has a positive impact on society. These include cooperatives, specialised job centres, foundations, and associations or businesses that contribute to societal inclusion.”
EIB Group President Nadia Calviñ said: “The EIB is committed to small businesses and micro-enterprises, which play a key role in the economy, job creation and society as a whole. This help to build a stronger, more competitive Europe.”
EIF CEO Marjut Falkstedt said: “We are very pleased to reaffirm our partnership with MicroBank to provide micro-enterprises, social enterprises and small entrepreneurs in Spain with finance that meets their needs and enables them to have a greater impact. The European Investment Fund is once again showing its strong commitment to the impact sector and the inclusive economy in Europe.”