Investment & Fund Management

The European Investment Fund (EIF) partnered with Colonya Caixa d'Estalvis de Pollença to establish a Social Entrepreneurship guarantee agreement in Spain under the EU Programme for Employment and Social Innovation (EaSI). This initiative was designed to address the significant financing challenges faced by social enterprises, particularly those in the Balearic Islands, which often struggle to secure loans from traditional financial institutions.

Through this agreement, Colonya Caixa d'Estalvis de Pollença was enabled to provide a total of EUR 9 million in financing to approximately 150 social entrepreneurs. The targeted beneficiaries included various social enterprises such as agri-business cooperatives, foundations, and NGOs that focus on providing work integration opportunities for disabled individuals. The tailored solution offered by the EIF allowed these enterprises to access loans with reduced interest rates and lower collateral requirements, thereby facilitating better financial conditions for their operations.

The impact of this initiative is significant, as it not only enhances access to finance for social enterprises but also supports the broader goal of combating social exclusion and fostering sustainable employment for vulnerable populations. The EIF's Chief Executive, Pier Luigi Gilibert, emphasized that this guarantee would strengthen the financial product offerings available to social entrepreneurs, who typically face barriers in obtaining necessary funding. This collaboration exemplifies how targeted financial instruments can effectively support the social economy and contribute to regional development.