EXTRAVAL: Facilitating Credit Access for SMEs and Entrepreneurs in Extremadura
About this good practice
Access to credit is one of the main barriers faced by SMEs and entrepreneurs in Extremadura, a region where small and micro businesses form the backbone of the local economy. Many are unable to secure bank financing due to a lack of liquidity.
Extraval was established to solve this problem by acting as a mutual guarantee society (SGR), offering financial guarantees that help local businesses obtain bank loans. The organisation provides close, personalised support throughout the financing process and uses an agile and flexible methodology.
Applicants can request support via the “Con Aval Sí” digital platform, in person at Extraval’s offices, or through bank referrals. Key to their approach is a risk analysis model that balances financial criteria with qualitative aspects such as project quality and proximity.
Key stakeholders and beneficiaries include SMEs, freelancers, banks, and public institutions like the Government of Extremadura and Fundación Caja Badajoz, which support Extraval's capital base.
Also, Extraval counts with the support of CERSA, Spanish refinancing company, which means that the risks assumed by Extraval are backed by the State, through CERSA.
Resources needed
Financial support from public and private partners, including regional government and financial institutions. Dedicated in-house team of 11 professionals with expertise in financial analysis and business advisory.
Evidence of success
In 2024 alone, Extraval facilitated over €16 million in guarantees through 553 operations, directly enabling SMEs to access financing. This support helped maintain existing jobs and create new employment opportunities, reinforcing the resilience of the regional economy. The results reflect Extraval’s core mission of empowering small businesses and entrepreneurs, particularly those facing difficulties in obtaining traditional credit.
Potential for learning or transfer
This model can be easily adapted to other regions where SMEs struggle to access credit. Key transferable elements include strong public-private cooperation, innovative risk-sharing mechanisms, and tailored advisory services that address specific local needs. Extraval not only offers guarantees for investment, but also supports liquidity through cash flow guarantees, facilitates access to public procurement via tender guarantees, and accelerates project execution with grant advance guarantees. Its holistic approach strengthens the regional business ecosystem and boosts SME competitiveness. The success of Extraval in Extremadura demonstrates how local guarantee institutions can play a strategic role in fostering entrepreneurship, supporting economic development, and enhancing the impact of public funding. Regions with similar socioeconomic challenges can replicate this model to unlock SME potential and promote inclusive growth.
Further information
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