Social and micro-enterprises in Europe will soon have access to over €500 million in finance, as the result of a new agreement signed between the European Commission and the European Investment Fund (EIF).
Support will be made available under the European Programme for Employment and Social Innovation (EaSI), which will provide a €96 million guarantee for the period 2014-2020 – expected to mobilise over €500 million in loans.
The programme targets individuals who wish to start or further develop their own social and micro-enterprises, in particular, people who have difficulties in entering the job market or in accessing finance.
The programme predecessor, the EU Progress Microfinance Initiative, EaSI’s predecessor, had mobilised financing for more than 30,000 disadvantaged micro-entrepreneurs.
The €96 million EaSI Guarantee will offer credit risk protection for lending products provided to social and micro-enterprises. The EIF will not provide direct financial support but will work through local financial intermediaries, such as microfinance and guarantee institutions, as well as banks active across the EU28 and additional countries participating in the EaSI programme.