Investment & Fund Management

The European Investment Fund (EIF) and Fair Finance entered into a significant partnership aimed at bolstering support for micro-enterprises and young entrepreneurs in London. This collaboration was established under the European Progress Microfinance Facility, which is funded by the European Commission and the European Investment Bank. Fair Finance, recognized as the first institution in the UK to receive backing from this facility, was allocated £2 million to extend financial assistance specifically to micro-entrepreneurs in disadvantaged areas, with a focus on those traditionally excluded from conventional banking services, including ethnic minorities and young entrepreneurs.

The tailored solution provided through this agreement allows Fair Finance to enhance its lending capabilities, thereby facilitating easier access to finance for approximately 370 local micro-enterprises. This initiative is particularly crucial in combating youth unemployment, as it empowers young entrepreneurs to establish and grow their businesses. Richard Pelly, Chief Executive of the EIF, emphasized the importance of this agreement in the context of tightening credit conditions, stating that it would deliver valuable benefits to micro-entrepreneurs across London.

Faisel Rahman, CEO of Fair Finance, highlighted the significance of this financing, noting that it serves as a catalyst for small business lending and builds confidence in the sector. The initiative aims to provide a socially responsible alternative to high-cost lending, thereby supporting thousands of Londoners in their entrepreneurial endeavors. This partnership marks a pivotal step in addressing the financing gap faced by micro-enterprises, particularly in a challenging economic landscape.