The European Investment Fund (EIF) and the European Commission recently announced a new initiative to help micro-credit and social enterprise finance providers develop their businesses under the EU Programme for Employment and Social Innovation (EaSI).
The objective of this instrument is to build up the institutional capacity of selected financial intermediaries that have not yet reached sustainability or are in need of risk capital to sustain their growth and development.
The new "EaSI Capacity Building Investments Window" will reinforce the capacity of selected financial intermediaries in the areas of microfinance and social enterprise finance. Through equity investments (such as seed financing, risk capital) mostly, EIF will support the development of these finance providers, for instance by opening a new branch, investing in human resources, developing a new IT tool or financing certain expenses. Ultimately, these investments will help increase the offer and opportunities for micro-borrowers and social enterprises.