The EIB Group has played a leading role in launching this initiative, which combines EUR 100 million from the European Commission matched with funding from the European Investment Bank to support microfinancing in EU Member States. 

The facility is aimed at individuals who want to start or further develop their own micro-enterprise, including for self-employment. It will target people who have difficulties accessing the job market or have had trouble obtaining credit in the past. 

The first support mechanism under this program, a micro-loan guarantee instrument, will become available in spring 2010. A wider range of additional financial support instruments, including micro-loans, is set to reach the market in autumn.  

The EIF will not provide direct financial support to beneficiaries. The EIF will implement the facility through local financial intermediaries such as microfinance and guarantee institutions as well as banks active in each Member State. These intermediaries will then deal directly with interested parties to deploy the instruments made available under the facility. 

A dedicated EIF webpage will be set up by mid-April and will provide full details on how and when to apply for microfinance support from financial intermediaries working with the EIF under this facility.

Source; European Investment Fund