EIF partners with Finbee to channel €19m to Lithuanian micro-businesses
The European Investment Fund (EIF) has partnered with peer-to-peer lending platform Finbee to provide up to €19m (£16.4m)-worth of loans to businesses in Lithuania.
The European development lender has signed a portfolio guarantee agreement with Finbee under the InvestEU programme, meaning that it underwrites the risk of the loans.
The EIF said that the deal will benefit up to 800 businesses, most of which will be micro-enterprises experiencing difficulties accessing credit.
Read more: The seven largest P2P platforms in mainland Europe
Eligible borrowers will be firms with fewer than 10 employees and annual income below €2m. Unsecured loans of up to €50,000 will be provided for both investments and working capital.
Additionally, small- and medium-sized companies aiming to reduce their CO2 emissions, such as with investments in renewable energy, electric cars or sustainability, will be able to borrow up to €1m.
“Cooperation with the European Investment Fund is extremely important for us to purposefully pursue the mission of Finbee Verslui to enable Lithuanian small businesses to grow,” said Tomas Maciulaitis, head of Finbee. “The availability of financing for such businesses remains a sensitive issue and instruments such as this help to solve it step by step. With this guarantee, we will be able to provide financing to an even wider circle of customers, and we will also offer more favourable loan conditions and lower pricing.”
Read more: European P2P market demonstrates growth in 2023
EIF chief executive Marjut Falkstedt heralded Finbee’s strong track record supporting microbusinesses via the platform.
“Accessing credit is a big issue today, and thanks to the new agreement, Finbee will be able to further support a green and sustainable transformation of the economy, by facilitating the businesses to uptake of environmental-friendly, green and inclusive investments in Lithuania,” he added.
The InvestEU programme aims to trigger more than €372bn in in additional investments between 2021 and 2027.
Read more: Average P2P rates pass 10pc in mainland Europe
This is the second agreement between the EIF and Finbee. In March 2023, the two parties signed a senior loan agreement to provide €1m in loans to micro-enterprises under the EU Employment and Social Innovation Program. The EIF said that the financing reached Lithuanian companies within three months.