Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) signed a significant agreement with Microfinance Ireland (MFI) to provide a guarantee that supports the lending of an additional 30 million to micro-entrepreneurs over the next five years. This initiative specifically targets individuals who face challenges in accessing traditional financing, including migrants and entrepreneurs. The funding is part of the European Commission's EU Programme for Employment and Social Innovation (EaSI), which aims to enhance employment opportunities and social inclusion.
The tailored solution provided by EIF through the EaSI guarantee enables MFI to extend loans to approximately 2,100 micro-borrowers, thereby facilitating the establishment and growth of small businesses. This agreement builds on a previous partnership initiated in 2015, which has already demonstrated success in job creation, with MFI having supported the creation of 4,000 jobs through its lending activities.
Quantifiable results from MFI's efforts include the approval of 400 loans in 2017 alone, aimed at businesses that were either starting up or expanding. These loans, averaging under 2,500 each, represent the most cost-effective government job initiative across Ireland, particularly benefiting vulnerable sectors such as youth, the unemployed, women, migrants, and seniors. The EIF's guarantee is seen as a crucial endorsement of MFI's role in providing essential financial support to micro-enterprises that struggle to secure funding from conventional lenders. Through this partnership, MFI anticipates supporting the creation and retention of over 4,000 jobs in the next five years, significantly impacting the local economy and fostering entrepreneurship among underserved populations.