The European Investment Fund (EIF) and Finnish bank Oma Säästöpankki Oyj (OmaSp) have signed two guarantee agreements for social entrepreneurship and microfinance respectively in Finland under the EU Programme for Employment and Social Innovation (EaSI). This new financing agreement was made possible by the European Fund for Strategic Investments (EFSI), the core of the Investment Plan for Europe.
The microfinance agreement allows OmaSp to provide EUR 40 million loans to 2,600 micro-entrepreneurs over the next 5 years in Finland. Micro-entrepreneurs will be able to benefit from loans at a reduced interest rate with lower collateral requirements under the EU supported programme. OmaSp will primarily target self-employed and micro-entrepreneurs living in rural and peripheral urban areas.
Under the social entrepreneurship agreement, OmaSp will support approximately 100 social enterprises with EUR 10 million loans, primarily cooperatives, contributing to increased social and economic inclusion.
European Commission Vice-President for Jobs, Growth, Investment and Competitiveness Jyrki Katainen said: “With these new agreements, thousands of Finnish entrepreneurs will get better access to the funding they need to turn their ideas into concrete projects. This shows again that the Investment Plan is not only delivering on its commitment to create jobs and growth in the EU, but is also actively promoting social fairness and equal opportunities.”
European Commissioner Marianne Thyssen, responsible for Employment, Social Affairs, Skills and Labour Mobility, said: “Thanks to EU support, we will make €40 million available to support about 2,600 micro-enterprises in Finland. The European Commission is fully committed to boosting employment in Europe and getting more people into jobs, including the most vulnerable people in the labour market.”
EIF Chief Executive, Pier Luigi Gilibert, said: “These new EaSI guarantees enable OmaSp to boost its lending to social and micro-enterprises, who often struggle to access finance from traditional lenders. Micro-entrepreneurs and social enterprises in Finland will now have access to an additional EUR 50 million to start up, grow and expand their businesses.”
The EaSI Guarantee scheme was launched in June 2015. It is funded by the European Union and managed by the European Investment Fund. Social and micro-enterprises wishing to apply for a loan under EaSI, can contact OmaSp branches.
EIF will not provide direct financial support to enterprises but will implement the facility through local financial intermediaries, such as microfinance, social finance and guarantee institutions, as well as banks active across the EU-28 and additional countries that are participating in the EaSI programme. These intermediaries will deal with interested parties directly to provide support under the EaSI Guarantee.
Original source: European Commission
Published on 15 November 2018
