European Commission Directorate General for Ente : and EIB Group support microfinance in Spain

Under a mandate from the European Commission, the European Investment Fund (EIF) has signed an agreement on 27 January 2015 with MicroBank - the social bank within La Caixa - to facilitate loans of up to EUR 25 000 each to microenterprises and self-employed entrepreneurs in Spain. At least 40 000 companies and entrepreneurs will be able to benefit.

This is just the first of many agreements to be put in place across Europe, giving SMEs in all COSME countries easier access to the finance they need to grow their businesses. The COSME loan guarantee agreement between EIF and MicroBank will provide partial first loss cover for a new portfolio of loans worth up to EUR 650 million over the next three years. Partial first loss cover under the EU's COSME programme protects the lender against potential losses up to a predetermined amount. It allows banks to take on greater risk when lending money to small and medium-sized enterprises (SMEs).

The impact is substantial as every 1 EUR invested in a loan guarantee enables up to 30 EUR in SME financing. These loan guarantees will help many small enterprises who cannot otherwise get funding due to a higher risk profile or lack of collateral.

MicroBank has benefited from EU guarantees since it first began operations in 2007.

Businesses can contact selected financial institutions in their country to get access to EU financing: www.access2finance.eu

SME Initiative with Spain

The Commission has also signed an agreement for a new SME Initiative with Spain on 26 January 2015 to unlock at least EUR 3.2 billion of lending for companies with fewer than 250 employees. Under the terms of the agreement, regions in Spain will reallocate EUR 800 million of their European Structural and Investment Funds towards partial first loss cover for new projects.