The group of microcredit providers under Progress Microfinance counts now with the Instituto de Crédito y Finanzas Región de Murcia (ICREF) with a senior loan of up to €8 million which is expected generate, thanks to the leverage effect, up to €20 million in microloans. The European Progress Microfinance Fund does not provide direct financing to micro-entrepreneurs or individuals, but it works through microfinance providers, such as ICREF in Spain.

Instituto de Crédito y Finanzas Región de Murcia (ICREF) is joining the group of microcredit providers under Progress Microfinance with a senior loan of up to €8 million which is expected generate, if fully utilised, up to €20 million in microloans. With this, it is supporting micro-entrepreneurs, including the self-employed in one of the poorest regions in Spain, currently experiencing a high unemployment rate of approximately 25% (in particular of immigrants and young people) higher than the Spanish average of 20,33%. Recently, €6 million of microloans to Greek micro-entrepreneurs have been granted thanks to the same EU programme.

The ICREF objectives include favouring the creation of new enterprises, promoting self-employment, establishing and consolidating an entrepreneurial culture among young people, women and other minorities particularly hit by the crisis, and supporting micro-enterprises that have difficulty accessing traditional financing sources. ICREF is also exploring potential collaboration opportunities with the European Social Fund and with organisations that will provide mentoring and training programmes to the final beneficiaries in the Murcia region.

Overall, Progress Microfinance Fund aims to increase access to finance for micro-entrepreneurs, including the self-employed with €200 million of funding. 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. Loans of up to €25,000 are made available through selected microfinance intermediaries participating in the facility.