On the 3rd June 2009 the European Commission proposed to set up a new micro-finance facility which would provide micro-credit to small businesses and those who have lost their jobs and would like to start-up in business.
The proposed European Microfinance Facility for Employment and Social Inclusion outlined the intention to provide the unemployed with a fresh start and some of Europe’s most disadvantaged groups, including the young with a pathway in to entrepreneurship. The proposal included additional support from European Social Fund would also see individual entrepreneurs and founders of microenterprises receive assistance through mentoring, training, coaching and capacity building.
On the 2nd July 2009 following a decision by the European parliament and the Council of the European Union the Progress Microfinance Facility was established.
The Facility will receive a financial contribution of €100 million from 1 January 2010 to 31 December 2013. The initial budget of €100 million is expected to raise €500 million of credit in collaboration with international financial institutions.
The objective of the Facility will be to provide Community resources to increase access to micro-credits for:
• Individuals who have lost or at risk of losing their jobs and want
to start their own micro-enterprise including self-employment.
• Disadvantaged individuals, including the young who want to start their own micro-enterprise including self-employment.
• Micro-enterprises in the social economy who employ individuals who
have lost their jobs or who employ disadvantaged people including the
young.
In the EU micro-credit means loans under €25,000.
The Facility will be open to public and private bodies established in Member States which provide micro-finance to people and micro-enterprises in those States.
For further information and to download a copy of the Decision of the European parliament and of the Council establishing a European Microfinance Facility for Employment and Social Inclusion (Progress Microfinance Facility) published on 2 July 2009 by the Commission of the European Communities visit: http://ec.europa.eu/social/main.jsp?langId=en&catId=89&newsId=547