The European Investment Fund (EIF), a financial institution that is part of the European Investment Bank Group, will provide a guarantee of 18.75 million euros to Cgm Finance to finance investments in social enterprises in Italy. This transaction takes place within the framework of the European Commission’s InvestEU programme, aimed at mobilising 372 billion euros by 2027 in investments in favour of the EU’s political priorities.
As a result of this agreement, Cgm Finance will increase funding to Italian social enterprises, that is, to organisations engaged in activities with a strong social impact.
In detail, the EIF will provide an amount of 18.75 million euros, which can be increased to a maximum of 25 million euros, in guarantees for social enterprises and start-ups for loans approved by Cgm Finance in the period 2023-2025. The risk coverage rate may reach 80% of the initial value of the loan, and the guarantee will extend to a maximum of 12 years after the end of the registration period.