The InvestEU programme supports the EIF and Microbank to unlock €750 million for entrepreneurs, self-employed people and micro-enterprises in Spain

• The EIF and MicroBank have signed a €450 million guarantee agreement, to unlock €750 million in financing for projects by entrepreneurs, self-employed people and micro-enterprises

• The guarantee is supported by InvestEU, an EU programme that aims to unlock over €372 billion in investment by 2027

The European Investmend Fund (EIF), part of the EIB Group, has signed a €450 million guarantee agreement with MicroBank, CaixaBank’s social bank, to mobilise €750 million in financing for entrepreneurs, self-employed individuals, and micro-enterprises across Spain. This new guarantee agreement, backed by the InvestEU programme, reinforces the longstanding collaboration between the two institutions.

The financing will be channelled through three products: small and medium-sized enterprise (SME) competitiveness, microfinance and social entrepreneurship. These were created to address barriers often faced by entrepreneurs, micro-enterprises and self-employed people when seeking credit.

Boosting competitiveness, inclusion, and the social economy

The SME competitiveness guarantee will enable MicroBank to mobilise up to €500 million in financing to boost the competitiveness of small and medium-sized businesses.

The microfinance guarantee will allow €125 million to be mobilised in loans, helping to scale up or reinforce micro-enterprises, sustainable employment and inclusion in Spain, in particular for the most vulnerable in society.

The social entrepreneurship guarantee will make it possible to mobilise up to €125 million. This will finance projects undertaken by organisations and businesses with a social focus, and whose work has a positive impact on society. These include cooperatives, specialised job centres, foundations, and associations or businesses that contribute to societal inclusion.

EIB Group President, Nadia Calviño, said: “The EIB is committed to small businesses and micro-enterprises, which play a key role in the economy, job creation and society as a whole. This help to build a stronger, more competitive Europe.”

EIF Chief Executive, Marjut Falkstedt, said: “We are very pleased to reaffirm our partnership with MicroBank to provide micro-enterprises, social enterprises and small entrepreneurs in Spain with finance that meets their needs and enables them to have a greater impact. The European Investment Fund is once again showing its strong commitment to the impact sector and the inclusive economy in Europe.”

Executive Vice-President for Prosperity and Industrial Strategy, Stéphane Séjourné, said: “Among our priorities, we must facilitate entrepreneurs’ access to finance. As the largest risk-sharing instrument currently in place, the InvestEU programme is fulfilling this role.   It helps us finance our key policy priorities such as innovation and infrastructure to accelerate the green and digital transition. It supports SMEs and social sectors. I am committed to ensure its full implementation.

Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness, Roxana Mînzatu, said: “Social investment is a priority that I intend to put at the core of my mandate, and this includes financing projects that contribute to growing and creating jobs, while advancing inclusive societies. This partnership between the EIF and MicroBank will help us achieve an inclusive and resilient economy, encourage social equity, and boost competitiveness. It will help the social economy thrive, which is a vital driver of innovation and quality job creation.”

The General Manager of MicroBank, Cristina González, added that ‘this new agreement with the European Investment Fund is a fundamental step in consolidating our commitment to the social economy and the promotion of entrepreneurs in our country. Thanks to this collaboration, we will be able to continue supporting those projects that generate employment and strengthen the social and economic fabric of our territory’.

This new agreement is another in a series of guarantees signed by the EIF and MicroBank. In August, an agreement was signed to mobilise up to €80 million to finance employability projects. Other examples include a guarantee for granting loans to students to fund university studies, professional training courses, and digital skills courses, as well as a guarantee for loans to education companies working to improve people’s professional skills. 

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

El programa InvestEU 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).