Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) partnered with microStart to address the challenges faced by micro-entrepreneurs in Belgium, particularly those excluded from mainstream credit. The specific issue was the lack of access to financing for approximately 1,300 micro-entrepreneurs who needed support to develop their businesses. To tackle this, the EIF signed a microfinance guarantee agreement under the EU Programme for Employment and Social Innovation (EaSI), covering a loan portfolio of EUR 15 million.
The tailored solution involved the launch of a new loan product called mS Scale Up, which was designed to offer a wider range of micro-loan products with longer maturities and higher maximum loan amounts. This initiative aimed to provide preferential loan terms to micro-entrepreneurs, enabling them to expand their operations and improve their financial stability.
As a result of this collaboration, microStart was able to support the establishment and growth of 2,000 micro-enterprises, leading to the creation of 1,500 new jobs in Belgium. The funding not only facilitated the introduction of innovative credit products but also reinforced the commitment to boosting employment and supporting vulnerable groups in the labor market. Through this partnership, the EIF and microStart demonstrated a significant impact on the microfinance landscape in Belgium, enhancing access to finance for those who traditionally faced barriers.