Banca Valsabbina and the European Investment Fund have signed a social entrepreneurship guarantee agreement worth €10 million in Italy under the EU Programme for Employment and Social Innovation, which is a funding programme designed to fight social exclusion and poverty.
The financing allows for the EIF to guarantee 80% of the loss on each loan up to an estimated maximum total loss for the entire portfolio.
The agreement will enable Banca Valsabbina to offer loans with smaller collaterals from the social enterprises when the loan request is being submitted and apply a lower interest rate on the sums disbursed.