EIF and Laboral Kutxa Partner to Boost Micro-Businesses and Social Enterprises in Spain with €145 Million Support

(IN BRIEF) The European Investment Fund (EIF) has entered into an agreement with Laboral Kutxa to provide a portfolio guarantee aimed at mobilizing €145 million in support of micro-businesses, social enterprises, and social entrepreneurs in Spain. This collaboration, made possible through the InvestEU program, which seeks to stimulate over €372 billion in additional investment across the EU from 2021 to 2027, will allow Laboral Kutxa to offer favorable financing terms to over 5,000 microenterprises and social enterprises in the country. The initiative, under the Social Investments and Skills Window of the InvestEU Programme, also aims to promote job creation within this dynamic sector. With the EIF guarantee, Laboral Kutxa can provide financing of up to €2 million for social enterprises and microcredits up to €50,000. This agreement builds upon a decade-long partnership between EIF and Laboral Kutxa in the field of social economy, having already supported over 15,000 micro and social businesses and creating more than 24,000 jobs through financial products and advisory services.

(PRESS RELEASE) LUXEMBOURG, 15-Nov-2023 — /EuropaWire/ — The European Investment Fund (EIF) will provide Laboral Kutxa with a portfolio guarantee aimed at leveraging €145 million in support of micro-businesses, social enterprises, and social entrepreneurs in Spain. This agreement was made possible with the support of the InvestEU programme, which aims to trigger across the EU more than €372 billion in additional investment over the period 2021-27.

Thanks to the EIF’s backing, Laboral Kutxa will provide new financing on favourable terms to more than 5.000 microenterprises and social enterprises in the country. The agreement, under the Social Investments and Skills Window of the InvestEU Programme, also aims to foster job creation by this dynamic sector. The EIF guarantee will enable Laboral Kutxa to provide financing up to €2 million for social enterprises and microcredits up to €50,000.

This new agreement builds upon and consolidates a ten-year cooperation between EIF and Laboral Kutxa in the social economy area. During these years, more than 15,000 micro and social businesses have been supported through both financial products and advisory services, creating more than 24,000 jobs.

“We are thrilled to be renewing our support for the micro- and social-enterprise sectors in Spain,” said EIF Chief Executive Marjut Falkstedt. “This is a very dynamic sector with great potential to transform people’s lives. Despite this profound and very direct impact they can have, micro-enterprises and social businesses often have difficulties in accessing financing. That’s why we are glad to expand our partnership with Laboral Kutxa for the benefit of these excluded entrepreneurs, ultimately making money care more”.

Óscar Muguerza, Director of Business Development of LABORAL Kutxa, has emphasized the support of the EIF intervention for the bank’s continuous efforts to boost the social economy and entrepreneurship: “With these new guarantee lines in place we reaffirm our vocation for a different way of doing the banking business, accompanying the people and businesses that need it most, contributing to a more inclusive and cohesive society.”

Background information

About the European Investment Fund (EIF)

The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and micro-finance instruments that specifically target this market segment. In this role, it contributes to the achievement of key EU policy goals such as competitiveness and growth, innovation and digitalisation, social impact, skills and human capital, climate action and environmental sustainability.

About InvestEU

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the European Union, making funding for investment projects in Europe simpler, more efficient, and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity, and thus mobilise at least €372 billion in additional investment.

About Laboral Kutxa

Laboral Kutxa is a credit cooperative with more than 60 years of history that carries out its financial activity providing products and services to more than 1,150,000 families and companies. Its network of offices totals more than 280 points of sale, located in the main population centres in the northern half of Spain. Laboral Kutxa’s business model is based on wage solidarity and the participation of employees in management, since they are, in turn, owners of the entity. The figures for the end of 2022 show a balanced balance sheet, with 28,955 million resources under management and 15,476 million in loans and receivables, where the high levels of solvency stand out, with a Core Capital (Tier1) of 22.24%, and a consolidated net profit after taxes amounting to 151 million euros.

EIF and Laboral Kutxa Partner to Boost Micro-Businesses and Social Enterprises in Spain with €145 Million Support

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