The European Investment Fund (EIF) and Emil Banca, a small cooperative bank forming part of the nationwide ICCREA network of cooperative banks, have signed a EUR 2 million loan agreement aimed at supporting micro-enterprises and self-employed entrepreneurs in the Emilia Romagna Region, particularly in the provinces of Bologna, Modena and Ferrara.

Emil Banca will provide up to EUR 3 million of micro-loans to approximately 150 local micro-entrepreneurs having difficulty in accessing the traditional credit market. Micro-loans will also benefit businesses located in the areas hit by the earthquake in May 2012 and those creating further employment opportunities to help to face with the aftermath of the damages and the difficult economic situation.

This agreement marks the 23rd transaction across the EU signed under Progress Microfinance an initiative funded by the European Commission and the European Investment Bank and managed by the EIF.

Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance should contact Emil Banca branches directly, which will provide all information about the requirements and the procedure. For more information please refer to : http://istituzionale.emilbanca.it/istituzionale/Pagine/default.aspx

About the European Progress Microfinance Facility

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative was established with EUR 203 million of funding from the European Commission and the European Investment Bank. The European Investment Fund (EIF) acts as Management Company on behalf of the EU Microfinance Platform FCP-FIS - European Progress Microfinance Fund, the main vehicle through which Progress Microfinance is implemented. Progress Microfinance aims to increase access to finance for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Progress Microfinance does not provide direct financing to micro-entrepreneurs or individuals. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Emil Banca marks the 23rd transaction signed under Progress Microfinance since its inception and the fourth in Italy. Countries where agreements have been signed to date include Austria, Belgium, Bulgaria, Cyprus, France, Greece, Ireland, Lithuania, Poland, Portugal, Romania, Slovenia, Spain and The Netherlands. For further information about this initiative, please visit: www.ec.europa.eu/epmf

About the EIF

EIF's central mission is to support Europe's small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture capital and guarantees instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The EIF total net commitments to private equity funds amounted to over EUR 6.9bn at end 2012. With investments in over 435 funds, the EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. The EIF guarantees loan portfolio totalled over EUR 4.8bn in close to 255 operations at end 2012, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About Emil Banca

Emil Banca is part of the Italian cooperative banking network "BCC-Banche di Credito Cooperativo Casse Rurali ed Artigiane”. With 48 branches in the provinces of Bologna, Modena and Ferrara, Emil Banca is committed to social responsibility and it makes use of economic resources to enhance growth and support the development of the territories in which it operates. With over a century of history behind it and the experience of the 13 rural and artisan banks from which it was created, Emil Banca is a local credit union financing the real economy, supporting households and SMEs.

According to Emil Banca, microfinance is a key tool to overcome economic difficulties. Thanks to the collaboration with local authorities, the bank has also built a solid experience in offering micro-credit to individuals.
Over the past five years 237 people (74 in 2012) have obtained a micro-loan to overcome temporary financial difficulties and needs, totalling EUR 500.000.

In times of scarce liquidity on the market and tightened access to credit, the agreement with EIF allows Emil Banca to offer more resources to micro-enterprises, which is a key market segment for the bank’s activity, as demonstrated by its micro-lending activity: over 500 loans under EUR 25,000 were provided in 2012 to local businesses for a total of over EUR 7 million. For more information on Emil Bank please visit: http://istituzionale.emilbanca.it/istituzionale/Pagine/default.aspx

Press Contacts

European Investment Fund: Emanuela Schiavoni, Tel.: (+352) 426688326; e-mail: e.schiavoni @eif.org
Emil Banca Credito Cooperativo: Giuliana Braido, Tel.:(+39) 051-396939; e-mail: Giuliana.Braido@emilbanca.it ; Filippo Benni, Tel.: (+39) 051-396948, e-mail: Filippo.Benni@emilbanca.it

HIGHLIGHTS

Progress Microfinance Intermediaries