Following Patria Credit, which received last February a senior loan of € 8 million from Progress Microfinance, FAER IFN S.A. joined the group of microcredit providers with a senior loan of up to € 1 million aimed at supporting over 200 micro-enterprises in Romania.
This agreement will allow FAER to significantly scale up its micro-lending activity and to deploy more resources to finance micro-entrepreneurs and agricultural producers in rural areas of central Romania (mostly Transylvania).
FAER also supports the development and modernization of agricultural farms and micro-enterprises located mostly in rural areas by helping them to improve business efficiency. FAER Foundation (FAER’s main shareholder) provides agricultural training to farmers and rural communities, which also helps clients to run their businesses successfully.
Progress Microfinance is an EU microfinance initiative established with € 200 million of funding from the European Commission and the European Investment Bank and managed by the European Investment Fund. It aims to increase access to finance - loans below € 25 000 - for micro-entrepreneurs, including the self-employed. It has a particular focus on, but is not restricted to, groups with limited access to the conventional credit market. Examples include female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc.
The European Progress Microfinance Fund does not provide direct financing to micro-entrepreneurs or individuals, but it works through microfinance providers, such as Patria Credit and FAER in Romania.