If you are at the beginning of the road, having decided to start your own company but still somehow stuck due to financial problems or different challenges, you need to remind yourself that it can happen to everyone at some point, and the stress and worry can get to you easily. Though, understanding how to overcome your financial problems doesn’t have to be stressful.
We all know that the lack of access to finance is one of the main obstacles companies face but that doesn’t mean you can’t be successful or that your business is a failure. All you need is the right strategy and to keep your eyes open, especially when it comes to opportunities to be funded. There is always a way out, depending on how you want to look at the situation.
“Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage.” – Niccolo Machiavelli
The European Progress Microfinance Facility may be a good start to consider.
The European Progress Microfinance Facility was the microfinance initiative, launched and managed by EIF in the 2007-2013 programming period and funded by the European Commission and the European Investment Bank. Its financial resources have been fully deployed through selected financial intermediaries across the EU, which have provided micro-loans to micro-entrepreneurs.
In the new 2014-2020 programming period, under the European Commission’s Programme for Employment and Social Innovation (EaSI), EIF is managing the EaSI Guarantee Financial Instrument which is specifically dedicated to microfinance and social entrepreneurship finance.
Progress Microfinance aimed at supporting eligible intermediaries to enhance their capacity to provide micro-credits and guarantees on micro-credits to micro-entrepreneurs through the following products:
- four types of funded instruments (loans and equity investments): Senior Loans, Subordinated Loans, Risk-sharing Loans and Equity Participations
- micro-credit guarantees (direct or counter-guarantees)
Key figures
- Total loan amount provided to SMEs: EUR 350m
- SMEs supported: 30,473
Microfinance consists mainly of micro-loans (less than EUR 25,000) tailored to micro-enterprises (91% of all European businesses) and people who would like to become self-employed but are facing difficulties in accessing the traditional banking services. Throughout the European Union, 99% of all start-ups are micro or small enterprises, and one third of those were launched by unemployed people.
Compared to the microfinance markets in South Asia, South America or Africa, the European microfinance market is a young, highly heterogeneous but a growing market segment, notably in new Member States and some western countries, usually when the regulatory framework is conducive to this activity, with micro-credit institutions aiming at self-sustainability, increased micro-lending capacity and, in some cases, transformation into banks.
How to apply for EFSI financing
For Financial, Credit Institutions, Loan Funds, Guarantee Institutions established and operating in one or more of the EU Member States duly authorised to carry out lending/leasing activities to SMEs and Small Mid-Caps:
The basis for selecting EFSI financial intermediaries is an open Call for Expression of Interest. You can apply under the following EU initiatives:
- InnovFin SME Guarantee Facility
- COSME Loan Guarantee Facility
- EaSI Guarantee Instrument
For Fund management companies targeting SMEs and Small Mid-Caps
The basis for selecting EFSI financial intermediaries is an open Call for Expression of Interest. For more details, check the application processes at:
- EFSI Equity
- Single EU Equity Financial Instrument
For further information: European Investment Fund