Investment & Fund Management

The European Investment Fund (EIF) and EZBOB signed a guarantee agreement aimed at supporting over 1,000 micro-enterprises in the UK, particularly focusing on young entrepreneurs who often struggle to access credit from traditional banking sources. This partnership is significant as it marks the first internet microfinance contract under the Progress Microfinance initiative, which is funded by the European Commission and managed by the EIF.

The tailored solution provided by the EIF allows EZBOB to enhance its lending capabilities, enabling the company to extend between £250 million to £500 million in credit to UK SMEs over the coming years. This unique risk-sharing agreement is designed to increase access to finance for companies that are typically excluded from conventional credit markets. The initiative specifically targets micro-entrepreneurs, including those from underrepresented groups such as female entrepreneurs and individuals with disabilities.

As a result of this collaboration, EZBOB is positioned to significantly impact the micro-enterprise sector in the UK, facilitating the growth and development of businesses that have historically faced barriers to obtaining financing. The agreement is part of a broader effort under the European Progress Microfinance Facility, which has committed over EUR 130 million to support micro-borrowers across various EU countries since its inception in 2010.