The European Investment Fund and LABORAL Kutxa have signed a guarantee agreement expected to mobilise up to €150 million for microloans and social loans in Spain.
LABORAL Kutxa, a credit cooperative in the MONDRAGON group, will use the EIF guarantee to provide financing on “favourable terms” to more than 7,000 micro-enterprises and social enterprises, the European Investment Bank (EIB) announced on Thursday.
Micro-enterprises are typically very small businesses, while social enterprises are organisations that trade while pursuing social objectives.
Under the agreement, LABORAL Kutxa can provide loans of up to €2 million to social enterprises and microloans of up to €50,000.
The guarantee is backed by the EU’s InvestEU programme.
Second deal under InvestEU
This is the second InvestEU-backed guarantee agreement between the EIF and LABORAL Kutxa, following an earlier deal announced in 2023, the EIB said.
The latest agreement sits within InvestEU’s Social Investment and Skills area.
