financial instruments in support of ......and social enterprise finance budget easi financial...
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FINANCIAL INSTRUMENTS IN SUPPORT OF MICROFINANCE AND
SOCIAL ENTERPRISES
Andrea Maier, DG EMPL, Unit E1
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1. EaSI Guarantee for microfinance and social enterprise finance
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Budget EaSI Financial Instruments
EU Budget in EUR
Microfinance Social enterpreneur-ship
Total
Guarantees 56 million 40 million 96 million
Funded instruments
At least 30 million
At least 46 million
max. 97 million
Total At least 86 million
At least 86 million
193 million
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Overview implementation
EaSI Budget
ME/SE Inter-
media-ries
ME/SE
European
Investment Fund
• Implementation by the European Investment
Fund (EIF) on behalf of the Commission • Implemention via intermediaries
EaSI
ME/SE
National
Guarantee institution
EaSI Guarantee
loans
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Microfinance vs social entrepreneurship finance
Microfinance Social entrepreneurship
Target group Vulnerable individuals + micro-enterprises
Social enterprises (turn-over and balance sheet max. EUR 30 million, not listed in the stock-market)
Amounts Up to 25 000 € Up to 500 000 €
Other - Social impact measurement
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MFIs as final recipients?
Governance dimension
Limits on distribution of profits
Social impact measurement
Social dimension
Social aim as primary objective
Entrepreneurial dimension
Continuous economic activity
Limited profit distribution • rolling average over 3 years
max. 1/3 of profits • only if substantial part of pre-
defined impact achieved • in accordance with the SE's
pre-defined rules and procedures
Social impact measurement • Agreement between
Intermediary and SE on how to measure
• Reports to Intermediary on this basis
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Overview: A variety of products for intermediaries
Part 1: Guarantees
Part 2: Loans/quasi-
equity
Part 3: Equity
(with EFSI)
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2. Pilot projects in the area of the social investment market
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• Project period: 1 January 2014 – 15 September 2015 • Budget: EUR 2 million for grants
• 21 pilot projects from 15 EU countries
Developing the social finance market
Supply side Demand side
Development and establishment of financial instruments/mechanisms for social entrepreneurship support
Instruments / Schemes for investment readiness support to social enterprises
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Results
• Project examples
OksigenCrowd – crowdfunding platform for social enterprises in Belgium
Portuguese Social Investment Taskforce
Polish Impact Fund
• Recipe book for social finance
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3. European Fund for Strategic Investments
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Equity instruments
• For Incubators, accelerators and funds providing incubation services (at least EUR 30m)
• Business Angel Facility (at least EUR 25m)
• Payment-by-results scheme (without EaSI funding) (at least EUR 25m)
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Next steps
• Calls for expression of interest to be published on EIF website
EFSI will re-inforce the EaSI Guarantee
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More information
Websites:
EU Microfinance
http://ec.europa.eu/social/microfinance
EU Social entrepreneurship support
www.ec.europa.eu/social/socialentrepreneurship
Direct contact EIF for EaSI:
Per-Erik Eriksson [email protected]
Tel: + 352 24 85 81316