Investment & Fund Management

EIF and PerMicro collaborated to enhance microfinance accessibility for micro-entrepreneurs in Italy through a significant investment initiative. On February 1, 2011, the European Investment Fund (EIF) signed an agreement with PerMicro under the European Parliament Preparatory Action (EPPA), a EUR 4 million pilot program aimed at fostering sustainable microfinance development across the EU. This marked EIF's inaugural direct equity investment into a non-bank Microfinance Institution (MFI), with an investment of EUR 1 million for a 20.4% equity stake in PerMicro.

The tailored solution provided by EIF involved leveraging this investment to attract additional resources, with PerMicro anticipating a total of EUR 3 million to be made available for supporting micro-businesses and micro-entrepreneurs in Italy. The funds are designated for micro-loans of up to EUR 25,000, aimed at individuals starting or developing their businesses, including those pursuing self-employment. This initiative not only addresses the financing gap faced by micro-entrepreneurs but also contributes to the broader economic development in the region by empowering small business growth.