Investment & Fund Management
European Investment Fund Partner
Full Credential Description
Over EUR 24 million was allocated to support over 1,600 micro-enterprises in Spain through a guarantee agreement signed between the European Investment Fund (EIF) and LABORAL Kutxa. This initiative specifically aimed to enhance access to finance for micro-entrepreneurs, particularly young entrepreneurs who often struggle to secure credit from traditional banking sources. The Progress Microfinance program, funded by the European Commission and managed by EIF, plays a crucial role in this effort.
The tailored solution provided by LABORAL Kutxa includes not only financial support but also mentoring and coaching for micro-borrowers. This comprehensive approach is designed to assist young entrepreneurs in developing their business projects, offering consulting, training, and support during both the initial launch and subsequent expansion phases of their businesses. The agreement allows LABORAL Kutxa to improve loan pricing conditions for riskier clients, thereby facilitating better access to finance for these businesses.
As a result of this partnership, LABORAL Kutxa is positioned to further develop its lending activities to small and micro-enterprises in Spain, contributing to employment creation in a challenging labor market. The initiative underscores the importance of entrepreneurship as a viable solution for labor insertion and self-management, particularly in regions where job opportunities are limited. This agreement marks a significant milestone in the EIF's commitment to supporting micro-entrepreneurs across Europe, with LABORAL Kutxa being the 51st transaction under the Progress Microfinance initiative since its inception in 2010.