Investment & Fund Management

The European Investment Fund (EIF) partnered with microlux, Luxembourg's first non-bank microfinance institution, to address the significant challenge of access to finance for microbusinesses in Luxembourg. Many potential entrepreneurs, particularly from vulnerable communities such as refugees and financially-excluded individuals, often struggle to secure traditional bank loans. This partnership was established under the EU Programme for Employment and Social Innovation (EaSI) and was supported by the European Fund for Strategic Investments (EFSI), which is a key component of the Investment Plan for Europe, also known as the "Juncker Plan."

To tackle these niche issues, EIF provided a guarantee that enabled microlux to offer EUR 5 million in loans to approximately 400 microbusinesses over a three-year period. This financial backing is crucial for micro-entrepreneurs who typically lack access to conventional financing options. The initiative not only aims to provide financial support but also includes advisory services to help these businesses launch and grow effectively.

As a result of this collaboration, microlux is positioned to mobilize significant investments, with expectations of generating around EUR 250 million in Luxembourg and approximately EUR 178 billion across Europe. This initiative exemplifies a targeted approach to fostering economic inclusion and supporting the entrepreneurial aspirations of individuals who would otherwise be denied the opportunity to develop their microbusinesses.