Netherlands: EIB and Qredits boost access to microloans for small companies with InvestEU backing

This article is published in association with European Investment Bank.

• Dutch microfinance expert Qredits borrows €40 million from EIB to support growth and investments by very small companies in the Netherlands.
• The Dutch Ministry of Economic Affairs provides a 50% state guarantee on the loan to help make this financing possible.
• The other half is supported by the European Commission’s InvestEU programme.
• Qredits expects to support a further almost 1,800 small companies thanks to this new round of financing. Its main sectors include retail, catering services and construction.

The European Investment Bank will provide a €40 million loan facility to microfinance supporter Qredits to expand its lending portfolio aimed at small businesses in the Netherlands. Qredits will on-lend the money under favourable conditions to the smallest section of the SME segment, specifically one-person businesses, micro-enterprises, and start-ups. The EIB financing is supported by the European Commission under the InvestEU programme.

Jean-Christophe Laloux, Director General, Head of EU Lending and Advisory of the EIB, stated, “Micro companies are very important not only for the economy but also in our social fabric, yet they are the most disadvantaged business segment when it comes to obtaining financing. The EIB Group has been a supporter of Qredits since 2015, because we recognise the importance of making financing available to the smallest companies in our economies. Especially now, in the face of economic uncertainty, we want to make sure that small scale entrepreneurship can invest and grow.”

Vincent Karremans, minister of Economic Affairs adds: “Many start-ups and small businesses have great ideas but struggle to get financing. Qredits helps those small entrepreneurs turn their plans into reality. The Dutch Government supports Qredits to make sure they can keep doing what they do best: giving entrepreneurs the opportunity to grow, innovate and contribute to economic development across the Netherlands.”

Very small businesses often lack the track record required to obtain adequate financing, making it difficult for them to access loans from regular banks. By expanding Qredits’ lending capacity, the EIB can help to address this market gap, thus enabling investments and supporting micro-businesses’ potential future growth. To do so, the EIB will build on Qredits’ expertise in the micro-segment, their experienced staff and the network of local offices throughout the Netherlands.

Cecilia Thorfinn, head of the EC Representation to the Netherlands, added: “This kind of investment neatly aligns with the InvestEU objective of promoting social investments, specifically microfinance, ethical finance, social enterprise finance, and the social economy.”

Qredits CEO, Marco Smit, added: “Small companies are the lifeblood of our economy and our society. With this new loan we will be able to support thousands of new starters and small companies with starting and growing their businesses. This way, together with the EIB, we can really make an impact in local and regional communities throughout the Netherlands.”

Since 2015, the EIB Group has provided €140 million in EIB loans to Qredits. The EIF, an EIB subsidiary, has furthermore provided guarantees to Qredits covering portfolios of up to €170 million in lending to micro companies in the Netherlands and in Dutch overseas territories.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its Member States. The Netherlands owns a 5,2% share of the EIB. It makes long-term finance available for investment in order to contribute towards EU policy goals and national priorities. More than 90% of its activity is in Europe. Over the last ten years, the EIB has made available more than €27 billion in financing for Dutch projects in various sectors, including research & development, sustainable mobility, drinking water, healthcare and SMEs.

Qredits is a non-profit organization and aims at helping starting entrepreneurs and expanding small SMEs by providing loans as well ascoaching and training services. Qredits has 150 professional employees and in addition works with over 600 voluntary coaches. The organisation is supported by the Dutch State through equity-like funding and various guarantees. In recent years Qredits has developed into the leading alternative financing channel for small entrepreneurs in the Netherlands with 42.030 loans disbursed for a total of €927 million. The EIF has been supporting Qredits since 2011 through various guarantees and other products. 

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable economy. It helps generate additional investments in line with EU policy priorities, such as the European Green Deal, the digital transition and support for small and medium-sized enterprises. InvestEU brings all EU financial instruments together under one roof, making funding for investment projects in Europe simpler, more efficient, and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal. The InvestEUFund is implemented through financial partners who invest in projects using the EU budget guarantee of €26.2 billion. This guarantee increases their risk-bearing capacity, thus mobilising at least €372 billion in additional investment.