EU LEVEL · FUNDING
Funding for European microfinance
Where the money comes from: EU financial instruments, other public funders such as the CEB and the EIB, and private investors. Pick a source to jump to it.
EU FUNDING
EU financial instruments for microfinance
Dedicated EU support for microfinance providers has evolved across successive programming periods — from technical assistance under JASMINE to guarantees and funded instruments under Progress Microfinance, EaSI and now InvestEU — complemented by grants and on-lending through the European Social Fund. The instruments below are the ones currently open to microfinance providers.
| EU-level instrument | Managed by | Programming period and status | Type of financial instruments disbursed | Eligible organisations |
|---|---|---|---|---|
| InvestEU — Social Investment and Skills Window | European Commission → European Investment Fund (EIF) | 2021–2027 · active | Portfolio guarantees (capped and uncapped) to microfinance lenders; funded instruments through intermediaries | Microfinance providers and non-bank lenders in the EU-27 (and associated countries) |
| European Social Fund Plus (ESF+) | European Commission → Member State managing authorities | 2021–2027 · active, implemented nationally | Grants, financial instruments (loans, guarantees) and support for non-financial services, depending on each operational programme | MFIs, support organisations and public bodies, as defined by each Member State |
| EU Competitiveness Fund | European Commission | 2028–2034 · under negotiation (next MFF) | To be defined | To be defined |
Earlier instruments — JASMINE (2008, technical assistance), Progress Microfinance (2010–2013, guarantees and funded instruments), EaSI (2014–2020, guarantees, capacity building) — are described in the Framework section. Figures and eligibility details in this table are to be validated by EMN.
How an EU guarantee works
EU guarantee → the microfinance provider lends with reduced collateral requirements → entrepreneurs excluded from bank credit gain access. The guarantee absorbs part of the losses, so providers can serve riskier clients at scale.
ESF+ on the ground
Member States decide how much ESF+ goes to microfinance — for funding providers and for the accompanying non-financial services. Implementation is uneven: some countries deploy it heavily, others not at all. See the country profiles →
OTHER PUBLIC FUNDING
The Council of Europe Development Bank and the European Investment Bank
Beyond the EU budget, two public financial institutions fund microfinance in Europe directly — through loans, guarantees and technical assistance to providers.
CEB
Council of Europe Development Bank
A multilateral development bank with an exclusively social mandate. It finances microfinance providers through loans to be on-lent to micro and small enterprises and vulnerable groups, and publishes tools for the sector such as the Social Impact Measurement Toolkit.
Products, volumes and eligibility — to be completed by EMN.
EIB GROUP
European Investment Bank and European Investment Fund
The EU’s bank and its specialised arm for SME and microfinance. The EIF implements the EU microfinance guarantees (Progress, EaSI, InvestEU) and invests in microfinance providers; the EIB provides loans and technical assistance, including outside the EU.
Products, volumes and eligibility — to be completed by EMN.
PRIVATE FUNDING
Private investors and impact funds
Alongside public money, a growing set of private investors funds European microfinance providers: ethical and cooperative banks, social and impact investment funds, foundations and microfinance investment vehicles. They provide senior and subordinated debt, equity and guarantees, often blended with EU instruments.
| Investor | Type | Main products for microfinance providers | Geographic focus |
|---|---|---|---|
| List of investors and products — to be completed by EMN. | |||
The policies behind the programmes
The EU entrepreneurship and SME agenda that InvestEU, ESF+ and the other programmes serve. Policy →
How EU support evolved
From JASMINE to InvestEU — why and how the EU supports microfinance. Framework →