Investment & Fund Management

The European Investment Fund (EIF) and MicroBank have entered into a €450 million guarantee agreement aimed at unlocking €750 million in financing specifically for entrepreneurs, self-employed individuals, and micro-enterprises in Spain. This initiative is part of the InvestEU programme, which seeks to mobilize over €372 billion in investment by 2027. The financing will be distributed through three tailored products: SME competitiveness, microfinance, and social entrepreneurship, each designed to address specific barriers faced by these groups in accessing credit.

The SME competitiveness guarantee will enable MicroBank to mobilize up to €500 million to enhance the competitiveness of small and medium-sized businesses. The microfinance guarantee will facilitate €125 million in loans aimed at scaling up micro-enterprises and promoting sustainable employment, particularly for vulnerable populations. Additionally, the social entrepreneurship guarantee will also mobilize €125 million to support organizations and businesses focused on social impact, including cooperatives and specialized job centers.

This partnership is expected to significantly boost the social economy in Spain, fostering job creation and enhancing societal inclusion. The EIF's Chief Executive, Marjut Falkstedt, emphasized the commitment to providing finance that meets the unique needs of micro-enterprises and social enterprises, thereby enabling them to have a greater impact on their communities. The agreement is part of a broader strategy to support the social economy and promote financial inclusion, which is vital for economic resilience and innovation in the region.