Investment & Fund Management

The European Investment Fund (EIF) and Banca Etica (BE) entered into a significant partnership by signing the first Social Entrepreneurship guarantee agreement in Italy under the EU Programme for Employment and Social Innovation (EaSI). This agreement aims to address the challenges faced by social enterprises in accessing traditional financing. Specifically, Banca Etica will provide a total of EUR 50 million in loans to 330 social entrepreneurs over the next five years, targeting businesses in both Spain and Italy.

The tailored solution offered by Banca Etica includes loans at reduced interest rates and lower collateral requirements, which are crucial for social enterprises that often struggle to secure funding from conventional lenders. The focus is on a diverse range of sectors, including those that employ marginalized groups such as people with disabilities, long-term unemployed individuals, migrants, and asylum seekers. This initiative is designed to foster social inclusion and support innovative, socially-oriented startups, particularly in areas like social agri-business and renewable energy technologies.

As a result of this partnership, the EIF and Banca Etica expect to significantly enhance access to finance for social enterprises, thereby contributing to the development of key sectors that promote social inclusion. The initiative is part of a broader effort to mobilize approximately EUR 1 billion in support for microfinance and social entrepreneurship across Europe, ultimately aiming to combat social exclusion and improve working conditions for vulnerable populations.