The European Investment Fund (EIF, part of the EIB Group) and UniCredit today signed an agreement providing for a ceiling of €50 million in social impact financing for Italian social enterprises that meet specific impact criteria. The agreement benefits from the support of the EU Program for Employment and Social Innovation (EaSI) and the European Fund for Strategic Investments (EFSI), the cornerstone of the Investment Plan for Europe, also known as the Juncker".
They will be eligible for these loans profit and non-profit companies, with a maximum annual turnover of 30 million euros. The goal is to support these companies with cheaper loans, up to 500.000 euros for each individual transaction. Jean Pierre Mustier, Chief Executive Officer of UniCredit, the President of the EIF, Dario Scannapieco, the Chief Executive Officer of the EIF, Pier Luigi Gilibert and Massimo Gaudina, Head of the Representation in Milan of the European Commission were present at the signing. This operation follows the agreement signed with the EIF in April 2018 to guarantee a ceiling of €50 million for the benefit of 2.500 Italian micro-enterprises and those signed in early 2019 with the EIB in support of Italian mid-caps, with particular attention to female entrepreneurship, innovative companies and projects to fight climate change.
Marianne Thysse, European Commissioner for Employment, Social Affairs, Skills and Labor Mobility, stated: “Thanks to the European funds included in the EaSI programme, UniCredit will be able to support social enterprises in Italy with a ceiling of 50 million euros . These social impact loans will not only support SMEs but also the community as a whole. By helping social entrepreneurship, we demonstrate once again our commitment to building a fairer Europe and strengthen its social dimension.”
Pier Luigi Gilibert, EIF Chief Executive, added: “This agreement provides Italian social enterprises with tailor-made financial support to help strengthen their impact on 0123 society. Pursuing the objective of inclusive growth and social cohesion is a very important part of the EIF's mission and, at the same time, a fundamental political objective for the European Union. The same is also an area that we are attaching increasing importance to. We are therefore pleased to extend our collaboration with UniCredit to offer better access to finance with reduced collateral requirements to foster Italian entrepreneurship with a social objective.”
Jean-Pierre Mustier, UniCredit CEO, commented: “At UniCredit we are proud that all our actions are guided by ethics and respect. It is our duty to support local communities, and the ongoing collaboration with the EIF demonstrates our shared goals: to build a more equitable and sustainable society through a constant commitment to support the Italian economy. We continue to further support the growth of Italian companies that can generate a positive social impact on the communities in which they operate."
Dario Scannapieco, President of the EIF and Vice-President of the EIB Group, said: “The EIB Group places sustainability at the heart of its activities. Inclusive finance and social impact finance are key tools for the European institutions. By sharing this objective, UniCredit represents a crucial partner for the Group as evidenced by the agreement signed today and by the many other collaborations such as support for female entrepreneurship, the promotion of innovation and the fight against climate change."
UniCredit will manage the selection of social initiatives and the disbursement of the loan of the social impact across the entire national commercial network. In order to apply, companies must declare their social commitment, the specific impact objectives they intend to achieve and be available to measure their progress during the entire duration of the loan. Finally UniGens, an association of volunteers made up of current and former UniCredit employees, will provide mentoring and training to the selected companies. UniCredit has developed a unique methodology aimed at facilitating the collection of specific social KPIs in order to analyze social results in a simple and measurable way.
This approach is adaptable to different sectors and is the result of continuous comparisons and feedback from customers and partners in order to support them in the initial phase of applying for a loan and on an ongoing basis to monitor their progress using a proprietary digital tool (the platform "Social Dimension"). In 2018, UniCredit's Social Impact Banking approved €72,9 million in loans, of which €47,8 million disbursed. This resulted the approval of 31 impact financing operations for 32,6 million euros and 2.050 microcredit loans for an amount of 40,3 million euros. Considering the overall activity of the EIB Group-UniCredit partnership, the total resources allocated to SMEs in Italy amount to approximately 5 billion euros in the last five years.
