Progress Microfinance agreement in Spain to benefit micro-enterprises

The European Investment Fund (EIF) and Banco de Crédito Cooperativo-Grupo Cooperativo Cajamar have signed a EUR 8m loan agreement aimed at supporting more than 1,500 micro-enterprises in Spain.

This new agreement expands the previous Progress Microfinance agreement with Cajamar Caja Rural, will support the institution to provide a total amount of EUR 40 million to finance to micro-entrepreneurs, with a strong focus on micro-entrepreneurs in rural areas in Spain, many of whom face difficulties in accessing credit from traditional banking sources. Progress Microfinance is initiated and funded by the European Commission and managed by the European Investment Fund.

Commenting on the agreement, EIB Vice-President, Román Escolano said: “We are pleased to be signing a second loan agreement with Cajamar Group enabling the bank to reach out to micro-entrepreneurs in Spain at this crucial time for the economy”.

The transaction will allow Cajamar Cooperative Group to continue further developing its current lending activity to small and micro-enterprises in Spain.

Luis Rodríguez, President of BCC-Cajamar Cooperative Group, said: “We know that self-employed and micro-enterprises are fundamental for generating wealth and development in their areas of influence, mainly rural areas. We will continue giving strong support to the agrifood sector and the social economy as part of our role as a cooperative credit entity.”

Cajamar Group has supported, via Progress Microfinance, more than 1,000 self-employed and micro-entreprises. Of these loans, 74% were destined to businesses with less than three employees and 65% to self-employed entrepreneurs, mainly to strengthen working capital. This new agreement plus the previous Progress Microfinance deal, provides a total amount of EUR 40 million for micro-enterprises in Spain.

Micro-enterprises wishing to apply for a micro-loan under Progress Microfinance can directly contact BCC-Cajamar Cooperative Group in Spain.           

About the European Progress Microfinance Facility

The European Progress Microfinance Facility (Progress Microfinance) provides guarantees and funded instruments to microfinance intermediaries. The initiative is established with EUR 205 million of funding from the European Commission and the European Investment Bank. 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. Loans less than EUR 25,000 are made available through selected intermediaries participating in the facility. Progress Microfinance does not provide direct financing to micro-entrepreneurs or individuals.

Cajamar marks the 76th transaction signed under Progress Microfinance since its inception in 2010. To date, commitments of EUR 146 million under Progress Microfinance have been signed to benefit micro-borrowers. EPMF agreements have been signed to date with financial intermediaries in 20 EU-Member States including Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, France, Greece, Ireland, Italy, Lithuania, Poland, Portugal, Romania, Slovenia, Slovakia, Spain, Sweden, The Netherlands and the UK.

For further information about this initiative please visit: www.ec.europa.eu/epmf

About EIF

The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance 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. EIF’s total net commitments to private equity funds amounted to over EUR 8.8bn at end 2014. With investments in over 500 funds, 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. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 350 operations at end 2014, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

More information about EIF is available on www.eif.org

About Cajamar Cooperative Group

Cajamar Cooperative Group is the first financial group of Spanish cooperative credit. It is made up of 19 Spanish rural savings banks and the Banco de Crédito Cooperativo. With 1.4 million partners and 4 million customers, the Group has 1,311 branches and 6,441 employees. As at December 31, 2014, its total assets amounted to EUR 36bn, its volume of assets under management was in excess of EUR 65bn and its solvency ratio stood at 11.78% and its Common Equity Tier 1 at 11.09%.

The Group operates in 41 provinces across Andalusia, Aragón, Asturias, Balearic Islands, Canary Islands, Cantabria, Castilla-La Mancha, Castilla-León, Catalonia, Community of Valencia, Galicia, La Rioja, Madrid, Navarra, Murcia, and the autonomous cities of Ceuta and Melilla.

This new agreement will target investment and working capital in the agrifood sector and social economy enterprises, and to the acquisition of automotive equipment and investment production, on favorable terms. The maximum amount ascends to EUR 24,999 with a maximum term of five years. The aim of these credits is so micro-enterprises and self-employed can have easy access to credit for investing in their business in order to allow them to elevate competitiveness and create employment as well as financing their payments commitments.

To facilitate access to such credits under preferential conditions, Cajamar Cooperative Group has 1,311 branches, and it have the collaboration of the main representatives of these sectors, such as the National Federation of Autonomous Workers (ATA) and the Spanish Business Confederation of Social Economy (CEPES), whose top officials attended the presentation of the line.

More information about Cajamar Cooperative Group is available on https://www.cajamar.es/es/comun/ 

Press information

EIF: David Yormesor, d.yormesor@eif.org, or visit EIF’s website www.eif.org  

BCC-Cajamar Cooperative Group: Paloma Bravo, comunicación@bcc.es or visit BCC’s website www.bcc.es