The European Investment Fund (EIF) has signed a guarantee agreement for €50 million with seven member banks of the Erste Group.
It will support social entrepreneurship by providing financing to over 500 social enterprises in seven countries during the next five years, in the framework of the EU Programme for Employment and Social Innovation (EaSI).
Support provided by the European Fund for Strategic Investments (EFSI) made the new financing agreement possible. It is called the social entrepreneurship guarantee agreement and it will finance social enterprises in Austria, Croatia, the Czech Republic, Hungary, Romania, Slovakia and Serbia. The finances will be provided under the EU Programme for Employment and Social Innovation (EaSI).
The Erste Group plans to offer financing to socially-oriented organisations, groups in education, health-care and social services. Moreover, the financing will target projects to encourage the employment of disadvantaged, marginalised, or vulnerable groups.
Napi.hu quotes Commissioner Thyssen as saying that "social enterprises will get support in starting up and developing their business, thereby creating jobs and inclusive growth at the grass-roots level".