Investment & Fund Management

The European Investment Fund (EIF) and Société financière de la NEF (la NEF) entered into a significant partnership by signing the first Social Entrepreneurship guarantee agreement, aimed at supporting over 300 social enterprises in France under the EU Programme for Employment and Social Innovation (EaSI). The primary challenge faced by these social entrepreneurs, including fair trade producers, organic farmers, and micro-borrowers in the renewable energy sector, was their difficulty in accessing credit from traditional banking sources.

To address this issue, the EIF's guarantee agreement allows La Nef to provide a total of EUR 33 million in loans to these micro and social entrepreneurs. This funding is particularly beneficial as it offers loans at reduced interest rates and does not require collateral, making it more accessible for those who typically struggle to secure financing. The EaSI Guarantee scheme, launched in June 2015, is funded by the European Commission and managed by the EIF, specifically designed to enhance access to microfinance and support social entrepreneurship.

The results of this initiative are expected to be substantial, with the potential to foster job creation and social inclusion by enabling more than 300 social enterprises to establish and grow their operations. The EIF anticipates that this agreement will not only support the current beneficiaries but also pave the way for additional social entrepreneurship transactions in the near future, further amplifying the impact on local communities.