EIF and MicroBank Secure €450 Million Guarantee Agreement to Support Spain’s Entrepreneurs and Social Enterprises

EIF and MicroBank Secure €450 Million Guarantee Agreement to Support Spain’s Entrepreneurs and Social Enterprises

(IN BRIEF) The European Investment Fund (EIF) and MicroBank have signed a €450 million guarantee agreement to mobilise €750 million in financing for entrepreneurs, micro-enterprises, and social enterprises across Spain. This initiative, backed by InvestEU, aims to address the financing barriers faced by small businesses and social organizations, supporting Spain’s economic growth and fostering a more inclusive society. The partnership continues a long-standing collaboration between the EIF and MicroBank, with the new funding focused on boosting competitiveness, promoting inclusion, and advancing social entrepreneurship.

(PRESS RELEASE) MADRID/LUXEMBOURG, 21-Jan-2025 — /EuropaWire/ — The European Investment Fund (EIF) and MicroBank, the social banking arm of CaixaBank, have entered into a significant €450 million guarantee agreement aimed at mobilising €750 million in financing. The funding is specifically designed to support entrepreneurs, self-employed individuals, and micro-enterprises throughout Spain. This new guarantee arrangement, supported by the InvestEU programme, further strengthens the longstanding partnership between the two institutions and aligns with the EU’s efforts to drive economic growth and foster inclusivity.

The funds will be allocated across three key financing products: SME competitiveness, microfinance, and social entrepreneurship. These initiatives are designed to address the common challenges that entrepreneurs and micro-enterprises face when seeking access to credit, enabling them to grow and succeed.

Unlocking Financing to Boost Competitiveness and Inclusion

The SME competitiveness guarantee will allow MicroBank to mobilise up to €500 million in loans, aimed at enhancing the competitiveness of small and medium-sized businesses throughout Spain. This initiative is critical in supporting the country’s economic recovery and providing SMEs with the resources they need to thrive.

The microfinance guarantee will enable MicroBank to channel €125 million into loans for micro-enterprises, promoting sustainable employment and economic inclusion. This will particularly benefit vulnerable groups within society, empowering them to build or scale their businesses and contribute to Spain’s economy.

Additionally, the social entrepreneurship guarantee will unlock up to €125 million in financing for organisations and businesses focused on social impact. These include cooperatives, job centres, foundations, and enterprises that contribute to societal inclusion. The financing will support projects that address social challenges while fostering positive community impact.

Statements from Key Figures on the Agreement’s Importance

EIB Group President, Nadia Calviño, expressed her support for the agreement, stating, “The EIB is committed to supporting small businesses and micro-enterprises, which are the backbone of the economy and crucial for job creation. This initiative plays an essential role in building a stronger, more competitive Europe.”

EIF Chief Executive Marjut Falkstedt echoed this sentiment, saying, “Our renewed partnership with MicroBank is a key moment in providing much-needed finance to micro-enterprises and social businesses across Spain. The EIF remains dedicated to driving economic impact and promoting inclusivity, which is essential for creating a more equitable society.”

Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy, emphasized the importance of InvestEU, stating, “Our goal is to ensure entrepreneurs have better access to finance, and InvestEU is essential in helping us achieve this. It directly supports innovation, infrastructure, and sustainable growth, including in the social sector. We are fully committed to its success.”

Roxana Mînzatu, Executive Vice-President for Social Rights and Skills, highlighted the role of social investment in fostering inclusive growth. “This collaboration is crucial for driving economic equity, fostering innovation, and creating quality jobs. By focusing on social investment, we can build a more resilient and inclusive economy,” she said.

MicroBank’s General Manager, Cristina González, added, “This agreement with the EIF is a crucial milestone in reinforcing our commitment to the social economy. It will allow us to continue supporting projects that generate jobs and strengthen the social fabric, especially for entrepreneurs across Spain.”

Ongoing Commitment to Social and Economic Development

This new guarantee agreement is the latest in a series of collaborations between the EIF and MicroBank. In August 2024, the two institutions signed an agreement to mobilise €80 million for employability projects. Other initiatives include loans for university studies, professional training, and digital skills courses, as well as financing for education companies working to improve workforce skills.

Through these agreements, the EIF and MicroBank are playing a pivotal role in driving Spain’s social and economic recovery, providing vital support to entrepreneurs and micro-enterprises, and contributing to a more inclusive and resilient economy.

Background information

About the European Investment Fund

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 enterprises (SMEs) by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance 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 MicroBank

MicroBank provides solutions for those with financial needs that are not adequately catered for by other organisations. It plays a crucial role in CaixaBank’s sustainable banking plan, which is part of Caixabank’s strategic plan. It is tasked with promoting financial inclusion, facilitating access to loans for the most vulnerable people, and strengthening its commitment to Spain’s socioeconomic development.

As its sole shareholder, CaixaBank has supported MicroBank since it was created with the financing it needs to grow its lending activity. It has also marketed MicroBank’s products using its extensive commercial network to make customers aware of the wide range of products that it offers and the quality of its locally focused service.

Over 250 entities throughout Spain work together to grant micro-loans, providing information about loan recipients, as well as advising on and monitoring projects.

MicroBank is also supported by the main European institutions promoting entrepreneurship and microfinance. These are: the European Investment Fund (EIF), the Council of Europe Development Bank (CEB) and the European Investment Bank (EIB).

Media Contacts:

EIF:

Maite Cordero  | m.corderomunoz@eib.org | Tel.: +34 606 66 82 62

Website: www.eif.org | X: @eif_eu

MicroBank:

Elena Martín, emartin@microbank.com Tel.: +34 630 00 75 93

SOURCE: European Investment Fund