InvestEU: EIF and CGM Finance sign agreement unlocking €18.75 million to support social enterprises in Italy

    Date: 21 March 2023
  • The EIF, backed by the European Union, is providing a €18.75 million guarantee to CGM Finance to support social enterprises and small mid-caps in Italy.
  • The agreement is backed by the Social Investment and Skills window of the European Union’s InvestEU programme.

The European Investment Fund (EIF), backed by InvestEU, will provide a €18.75 million guarantee to CGM Finance to finance investments in social enterprises in Italy. This transaction is backed by InvestEU, the European Commission’s programme aiming to mobilise at least €372 billion in investments for EU policy priorities by 2027.

This agreement will enable CGM Finance to provide more financing to Italian social enterprises — organisations whose activities have a strong social impact, and whose model prioritises people over profit.

The EIF will make €18.75 million — extendable up to €25 million — of guarantees available to social enterprises and startups via loans approved by CGM Finance for the three-year period from 2023 to 2025. The risk coverage is up to 80% of the initial value of the financing and will be guaranteed for up to 12 years after the end of the inclusion period. This will allow CGM Finance to support more social enterprises, reduce the risk and also support younger and smaller entities. The good risk coverage margin allows CGM Finance to minimise possible future risks, thus enabling it to invest in a larger number of innovative projects and enterprises.

This is the third transaction between the EIF and CGM Finance since 2019. Thanks to the two previous guarantee funds put in place — under the EU Programme for Employment and Social Innovation (EaSI) and the European Guarantee Fund (EGF) — CGM Finance has financed a total of 126 companies, disbursing a volume of around €25 million in guaranteed financing.

“We are delighted to join forces once again with CGM Finance, which, thanks to the InvestEU guarantee, will be able to support more than 160 social enterprises in Italy that traditionally face difficulties in accessing credit,” commented EIF Chief Executive Marjut Falkstedt. “Operations such as this one are crucial not only for promoting job creation and economic growth, but also for fostering financial and social cohesion, and promoting the development of a more inclusive society, making the funds provided by the EIF have a greater impact.”

European Commissioner for Jobs and Social Rights Nicolas Schmit said: “Italy has a thriving social economy and with this EU-backed guarantee, CGM Finance can help it flourish even more. This is a good example of how InvestEU is supporting businesses which have an important social impact and create jobs.”

“The EIF represents a great opportunity for smaller and younger companies," said President of CGM Finance Francesco Abbà. “Having such a high guarantee of coverage gives us the opportunity to also give confidence to new companies on the market, so as to help their development and promote their growth. In this way, we become promoters of new jobs for innovative projects capable of generating impact for society. Helping these companies right at the beginning of their journey or in the investments necessary for their development is the prerequisite for making the role of social enterprise grow even more in our country.”

Background information

The European Investment Fund (EIF) is a financial institution part of the European Investment Bank Group (EIB Group). Its main mission is to support European micro, small and medium-sized enterprises (SMEs) by supporting their access to finance and venture capital. The EIF is also active in supporting climate and infrastructure fund investments with a strong focus on environmental sustainability. In this role, the EIF pursues the objectives of the European Union to support innovation, research and development, entrepreneurship, growth and employment.

The InvestEU programme provides the European Union with long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.

CGM Finance is a consortium financial system that supports the development of social co-operation and has for years played a central role in the development pathways to system finance by supporting consortia in the management of relations with credit and financial institutions in the area. Around 400 members throughout Italy, including social cooperatives A and B, consortia and non-social cooperatives, foundations, associations, and other social enterprises. CGM Finance is the financial arm of the CGM Group, the largest network of social enterprises in Italy with about 58 territorial consortia and 700 cooperatives and social enterprises.

Press contact

European Commission: Flora MATTHAES
Tel.: +32 229 83951Email:

EIF: Lorenzo Squintani,, tel.: +39 366 57 90 312
Website: — Press Office: +352 4379 21000 —

CGM Finance Press Office
Edoardo Caprino
Giulia Fabbri 345 615 6164
Maria Cira Vitiello 331 4193814

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