EU Microfinance Launch

February 19, 2011

The European Union has announced the first in an expected series of financial allotments in support of micro-loans to small business and micro-entrepreneurs. The money - about $27.4 million - was given to the Dutch microfinance institution Qredits, which aims to use the money to help fund loans of up to the equivalent of about $34,200 each to more than 1,000 small businesses that can't qualify for bank loans.

Access to credit is a major concern for small companies in Europe, as it is in the U.S. And the problem is especially acute among small- and medium-sized enterprises (SMEs) and for entrepreneurs, many of whom are recently unemployed. In response, the EU approved an EU Microfinance Facility as part of its Europe 2020 strategy for smart, sustainable and inclusive growth. Check this past post for additional background.

The Netherlands is the first to benefit from the funding provided (a total of about $137 million), which is being implemented by the EU Commission on Employment, Social Affairs and Inclusion.

250 microfinance institutions made loans to Americans in 2007.