EIF backs €18.75 million guarantee for social enterprises and small mid-caps in Italy
The European Investment Fund (EIF) has announced its plan to provide a €18.75 million guarantee to CGM Finance, the financial arm of the CGM Group and largest network of social enterprises in Italy, to support social enterprises and small mid-caps in Italy. The agreement is backed by the European Union (EU) and aims to provide more financial resources to Italian social enterprises, which are companies with a strong social impact.
The guarantee can be extended up to €25 million and will be available for a three-year period from 2023 to 2025. The risk coverage is up to 80 % of the initial value of financing and will be guaranteed for up to 12 years after the end of the inclusion period.
CGM Finance can now support an increased number of younger and smaller social enterprises and invest in a larger number of innovative projects and enterprises. According to the President of CGM Finance, Francesco Abbà, there are now more opportunities to help new companies on the market, facilitating the creation of new jobs and innovative projects with impact for society (European Commission, 2023).
SPREAD2INNO, an EU-funded project under the Horizon Europe Programme, is an initiative with similar goals for SMEs and startups in Italy. However, the focus is different and puts innovation at the forefront. Since Italy, especially the Milano region, has been identified as an emerging innovation ecosystem lagging behind in funding opportunities, SPREAD2INNO seeks to support innovative and potentially profitable companies by connecting them with innovation ecosystem stakeholders in Italy, as well as more developed innovation ecosystems in Europe to ensure best practice sharing.
In conclusion, both measures are expected to help new, social, and innovative companies in Italy. The guarantees by the EIF will provide support for social companies, while SPREAD2INNO focuses on innovative, potentially profitable enterprises. This will, in turn, help to create more jobs and foster innovation, leading to a positive impact on the Italian economy.
Author: Lucas Wiegand
European Commission (2023, March 21). InvestEU: EIF and CGM Finance sign agreement unlocking €18.7 million to support social enterprises in Italy. https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1804 [accessed 2 May 2023].
European investment fund, social enterprises, Italian startups