With immediate effect, more micro-loans can be granted to start-ups and small companies in the framework of an initiative of the Federal Ministry of Labor, Social Affairs and Consumer Protection, due to two recently signed guarantee agreements between the European Investment Fund (EIF) and Erste Bank. For the first time social entrepreneurs will also benefit from the new EIF program and can obtain an EIF guarantee for their funding. Overall, Erste Bank will be able to extend loans in the amount of EUR 10 m. to persons, initiatives or associations which normally wouldn't have access to financing for lack of collateral.
EIF Chief Executive, Pier Luigi Gilibert said: “EUR 10 million for social and micro enterprises gives entrepreneurs an opportunity to start and grow their businesses in Austria. I am pleased that we are signing again the agreement for microfinance and our first social entrepreneurship guarantee agreement in Austria with Erste Bank – one of our key local partners under EaSI[1]. In addition to a recent guarantee for Austrian SMEs signed earlier this year, EIF is helping to enhance access to finance for entrepreneurs, from supporting micro-borrowers to small innovative MidCaps in the country.”
Who can apply for a subsidized micro-loan?
This program makes it possible for people who are unemployed or in danger of losing their job to establish a company of their own. The funding assistance is aimed at persons with a realistic business idea. The maximum loan amount is EUR 12,500. The program “dermikrokredit.at” of the Federal Ministry of Labor, Social Affairs and Consumer Protection has been up and running for several years already. Erste Bank and the participating Sparkassen (thrifts)[2] are providing funds for the extension of micro-loans under the program. Due to the EIF guarantee, far more micro-loans can be granted in future. Following the expiration of the first tranche, the agreement between the EIF and Erste Bank has now been renewed and effective immediately, another EUR 5 m. are available for micro-loans.
“The renewed cooperation offer by Erste Bank und Sparkassen, has paved the way for a secure, future-oriented continuation of the micro-credit program in coming years. I am convinced that due to the responsible commitment of Erste Bank's Social Financing in partnership with the Ministry of Social Affairs, the hitherto successful project will continue to open up opportunities for independent small companies in all sectors”, declares Alois Stoeger, Austria's Minister of Social Affairs.
After comprehensive consultations and reviews, 533 loans with a total volume of approximate EUR 6.2 m. have been granted in the meantime. Micro-loans are an important component of labor market policy, which gives unemployed people or those threatened by unemployment the opportunity to become self-employed. Additional information on the program can be found at www.dermikrokredit.at.
With immediate effect, more micro-loans can be granted to start-ups and small companies in the framework of an initiative of the Federal Ministry of Labor, Social Affairs and Consumer Protection, due to two recently signed guarantee agreements between the European Investment Fund (EIF) and Erste Bank. For the first time social entrepreneurs will also benefit from the new EIF program and can obtain an EIF guarantee for their funding. Overall, Erste Bank will be able to extend loans in the amount of EUR 10 m. to persons, initiatives or associations which normally wouldn't have access to financing for lack of collateral.
EIF Chief Executive, Pier Luigi Gilibert said: “EUR 10 million for social and micro enterprises gives entrepreneurs an opportunity to start and grow their businesses in Austria. I am pleased that we are signing again the agreement for microfinance and our first social entrepreneurship guarantee agreement in Austria with Erste Bank – one of our key local partners under EaSI[1]. In addition to a recent guarantee for Austrian SMEs signed earlier this year, EIF is helping to enhance access to finance for entrepreneurs, from supporting micro-borrowers to small innovative MidCaps in the country.”
Who can apply for a subsidized micro-loan?
This program makes it possible for people who are unemployed or in danger of losing their job to establish a company of their own. The funding assistance is aimed at persons with a realistic business idea. The maximum loan amount is EUR 12,500. The program “dermikrokredit.at” of the Federal Ministry of Labor, Social Affairs and Consumer Protection has been up and running for several years already. Erste Bank and the participating Sparkassen (thrifts)[2] are providing funds for the extension of micro-loans under the program. Due to the EIF guarantee, far more micro-loans can be granted in future. Following the expiration of the first tranche, the agreement between the EIF and Erste Bank has now been renewed and effective immediately, another EUR 5 m. are available for micro-loans.
“The renewed cooperation offer by Erste Bank und Sparkassen, has paved the way for a secure, future-oriented continuation of the micro-credit program in coming years. I am convinced that due to the responsible commitment of Erste Bank's Social Financing in partnership with the Ministry of Social Affairs, the hitherto successful project will continue to open up opportunities for independent small companies in all sectors”, declares Alois Stoeger, Austria's Minister of Social Affairs.
After comprehensive consultations and reviews, 533 loans with a total volume of approximate EUR 6.2 m. have been granted in the meantime. Micro-loans are an important component of labor market policy, which gives unemployed people or those threatened by unemployment the opportunity to become self-employed. Additional information on the program can be found at www.dermikrokredit.at.
“Recent years have shown how much can be achieved with this initiative. It has been possible to pave the way for a successful entrepreneurial future for a great many start-ups”, notes Thomas Uher, chairman of the management board of Erste Bank Oesterreich. Applications by start-ups in the framework of “Der Mikrokredit” can be submitted exclusively through the internet platform www.dermikrokredit.at. Processing is subsequently performed by the GruenderCenter (start-up center) of Erste Bank und Sparkassen.
Social entrepreneurs and NGOs included for the first time
An entirely new agreement with the EIF enables Erste Bank to offer subsidized loans to social entrepreneurs and NGOs as well. Social entrepreneurs comprise companies whose products, services or employment opportunities are covering important basic needs in the areas of labor, health, education, environment or culture. Charitable organizations and companies, as well as NGOs and certain associations can make use of this opportunity. Due to the EIF's guarantees, interest rate advantages which result from its assumption of risk can be passed on in full to customers. Overall, an additional EUR 5 m. are available for this initiative. Processing is performed directly in Erste Bank branch offices in Vienna, Lower Austria and Burgenland.
Queries:
Erste Bank Oesterreich
Christian Hromatka, Press Department Erste Bank Oesterreich,
christian.hromatka@erstegroup.com, Tel. +4350100 13711
Federal Ministry of Labor, Social Affairs and Consumer Protection
Nikolai Moser, Press Spokesperson
nikolai.moser@sozialministerium.at, Tel. +43171100 862277
European Investment Fund EIF:
David Yormesor
d.yormesor@eif.org, Tel: +352 42 66 88 346
[1] EaSI: EU Program for Employment and Social Innovation
[2] Participating Sparkassen: Sparkasse Steiermark, Sparkasse Carinthia, Sparkasse Tyrol, Sparkasse Dornbirn , Sparkasse Salzburg, Sparkasse Upper Austria.
