22.03.2021   

Erste Group’s Social Banking is helping social organizations in CEE by offering them Covid-19 emergency working capital loans for which the ERSTE Foundation is covering all loan-interest payments for 2021 . Initially launched in May 2020, these loans aim to support non-profit organizations (NPOs), especially those within the fields of health and social welfare. Based on the demand coming from the social sector, Erste Group has prolonged the initiative until September 2021. Erste Group disbursed EUR 14 mn in loans, including emergency working capital loans, to over 100 social enterprises and NPO’s in 2020.

"With the Covid-19 crisis’ continuing negative impact on NPOs, we are prolonging the 25 million euro emergency loans facility that is available via all of our local banks. The interest payments for such loans in 2021 will be covered by ERSTE Foundation, as they had been in 2020," said Peter Surek, Head of Social Banking Development at Erste Group.

"Many NPOs have used the crisis as an opportunity – for digitization, for new offers, or for new fundraising. For others, this has been and remains first and foremost a crisis. That is why we have decided to help cover the interest payments of civil society organizations. Their contribution is crucial to ensuring our societies manage to achieve a full recovery after the Corona crisis," said Mario Catasta, chair of the managing board of ERSTE Foundation.

Various social enterprises and NPOs have used these interest-free loans to make sure they can keep supporting their society’s most vulnerable people even during the Corona crisis.

In order to receive an interest free loan, eligible clients across the markets in which Erste Group is present can contact the local social banking units of the banking group directly. The respective contacts can be found here.

Banking that matters: Erste Group’s Social Banking activities have made a real impact

Erste Social Banking supports starting entrepreneurs, microfinance businesses, social organisations and people in financial difficulties. As the first mover and leader in social banking in the CEE region, Erste Group has already provided almost EUR 380 mn in around 20,000 loans for financing micro- and starting entrepreneurs, as well as social organizations. Erste Group’s Social Banking activities have supported over 35,000 clients with financing, education and/or mentoring and have helped to create and preserve more than 45,000 jobs across the region.