EaSI Guarantee Instrument

Update as at 1 November 2020:

For existing intermediaries, the application period for the covid-19 related support measures under the EaSI Guarantee Initiative has closed. We are updating information on this instrument as well as the list of selected financial intermediaries on an ongoing basis.

The EIF’s response measures to the COVID-19 pandemic (as at 24 July 2020)

The EIF and the European Commission (EC) are launching specific COVID-19 support measures under the EaSI Guarantee Instrument. Under this scheme, the EIF will provide enhanced terms and conditions for guarantees and counter-guarantees to incentivise financial intermediaries to continue providing financing to micro-borrowers, micro-enterprises and social enterprises hit by the economic consequences of the coronavirus pandemic.

In light of the budgetary constraints, the new COVID-19 support measures described in the call are available primarily to intermediaries who have already entered into a guarantee contract with the EIF, and to intermediaries that have been already selected. New applicants should note that the total amount of applications already received exceeds the EU budget available under the EaSI Guarantee instrument. Any new applications may be considered should additional resources become available.

Interested entities are invited to consult the full details in the call documents available below, including the addendum detailing the COVID-19 support measures. Existing intermediaries shall be able to benefit from improved guarantee terms without an additional application process by executing an amendment to their agreements in line with the Notice to Financial Intermediaries. The application deadline to the COVID-19 support measures for existing intermediaries is 31 October 2020.

For a quick overview of the COVID-19 support measures click here.

About the EaSI Guarantee Instrument

The EaSI Guarantee Instrument is funded from the EaSI Programme and is specifically dedicated to microfinance and social entrepreneurship. One of its key objectives is to increase the availability of and access to finance for vulnerable groups wishing to launch their own enterprises, micro-enterprises and social enterprises, both in their start-up and development phases.

The EaSI Guarantee Instrument builds on the success of the European Progress Microfinance Facility (Progress Microfinance) an EU initiative launched in 2010 and managed by EIF, that has so far mobilised more than €520m, supporting more than 55 000 micro-borrowers.

How does the EaSI Guarantee Instrument work?

EIF does not provide financing directly to micro-entrepreneurs or social enterprises. Through the EaSI Guarantee Instrument, the EIF offers guarantees and counter-guarantees to financial intermediaries, thereby providing them with a partial credit risk protection for newly originated loans to eligible beneficiaries. Intermediaries are selected after an application under a call for expression of interest followed by a due diligence process. Once selected by EIF, these partners act as EaSI financial intermediaries, and start originating loans to eligible beneficiaries within the agreed availability period.

Thanks to the risk-sharing mechanism between the financial intermediaries and the European Commission, the EaSI Guarantee Instrument enables selected microcredit providers and social enterprise finance providers to expand their outreach to underserved micro and social enterprises, facilitating access to finance for target groups who have difficulties in accessing the conventional credit market.

Who can benefit from the EaSI Guarantee Instrument and what products will be offered by EaSI financial intermediaries?

Under the EaSI Guarantee Instrument, EIF provides capped guarantees and counter-guarantees partially covering the portfolio credit risk in the microfinance and social entrepreneurship segments.

Who is eligible to become a financial intermediary under the EaSI Guarantee Instrument?

Eligible financial intermediaries are public and private bodies established on a national, regional or local level in one or several EaSI participating countries, authorised to provide microcredit for persons and micro-enterprises and/or financing for social enterprises.

Examples of intermediaries potentially eligible for an EaSI Guarantee Instrument are:

• in the field of microfinance: financial institutions, microfinance institutions/microcredit providers, leasing companies, guarantee schemes, guarantee institutions or other institutions authorised to provide microfinance loans/guarantees or risk-sharing structures according to the applicable legislation;
• in the field of the social entrepreneurship: financial institutions, guarantee schemes, guarantee institutions, foundations, family offices, social investment funds or other institutions duly authorised to provide loans/guarantees or risk-sharing structures according to the applicable legislation.

At the date of publication of the call for expression of interest, the countries covered by the EaSI Programme comprise EU Member States, Albania, North Macedonia, Iceland, Montenegro, Serbia, Türkiye, and may include other associated countries having entered into relevant agreements with the European Union. Additional eligible EFTA, Candidate and Potential Candidate countries may be added to the participating countries.