The European Investment Bank (EIB) signed a loan agreement of EUR 100 million with MicroBank, the social bank within la Caixa. In addition, the European Investment Fund (EIF) also signed a COSME loan guarantee agreement with Microbank that will provide partial first loss cover for new loans granted by the MFI. Both transactions are designed to support microenterprises and self-employed entrepreneurs in Spain with loan amounts of up to EUR 25,000. The EIB loan, which will be matched by a further EUR 100 million of credit by MicroBank, will be used to provide funding to self-employed young people and start-ups in Spain. The funds are expected to stimulate investment and boost economic growth and youth employment. The COSME guarantee agreement will provide partial first loss cover for a new portfolio of loans worth up to EUR 650 million over the next three years.
“This agreement represents a further step in the EIB Group’s continuous support for small and medium-sized businesses, which will play a key role in economic recovery. By focusing on microenterprises and self-employed entrepreneurs, this operation will target a market segment that has been particularly affected by the restricted access to finance. This is why the involvement of the EIB group is especially necessary and valuable," said EIB Vice-President Román Escolano. “Equal access to financing is an essential requirement for balanced economic development and has a decisive impact on the sustainable generation of wealth and jobs. With this agreement, we will continue supporting those entrepreneurs, self-employed people and small businesses that, for various reasons such as their small scale or lack of collateral, may find it difficult to obtain the necessary credit to carry out their projects," said Antonio Vila, the President of MicroBank.