Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) partnered with Credal and Hefboom to establish two social entrepreneurship guarantee agreements in Belgium, aimed at addressing the financing challenges faced by social enterprises. These agreements, facilitated by the European Fund for Strategic Investments (EFSI) and supported by the EU Programme for Employment and Social Innovation (EaSI), enable Credal and Hefboom to provide loans to 530 start-up and developing social enterprises over the next five years. A key feature of this initiative is the exemption of collateral requirements for these loans, which is particularly beneficial for social entrepreneurs who often struggle to secure financing from traditional lenders.
Credal and Hefboom specifically target start-ups and companies that have been adversely affected by the financial crisis. The EaSI guarantees allow these organizations to enhance their lending capabilities, thereby supporting social enterprises that focus on generating social impact rather than merely financial returns. This initiative is expected to significantly increase access to finance for social entrepreneurs in Belgium, fostering economic growth while also promoting social cohesion.
The EIF's Chief Executive, Pier Luigi Gilibert, emphasized that these guarantees would enable Credal and Hefboom to expand their lending to social enterprises, which typically face barriers in accessing finance. The initiative reflects a growing recognition of the importance of social entrepreneurship in driving economic development and supporting vulnerable communities.