Call reference VP/2018/017: EaSI Programme - Transaction cost support for social enterprise finance
Purpose of the call
This call is intended to complement EU-level financial instruments under the EaSI programme and EFSI with a grant component to further promote the development of the social enterprise finance market and facilitate access to finance for social enterprises.
Objectives – Priorities
The objective of the call is to develop the social enterprise finance market. It will catalyse risk capital investments below EUR 500 000 that otherwise would not happen in the area of social finance, by supporting transaction costs linked to these investments. This transaction cost support scheme takes the form of a grant and can be combined with financial instruments as a means to address the mismatch of needed and sustainable ticket sizes.
The grant is aimed at financial intermediaries that undertake long-term risk capital investments in ticket sizes of less than EUR 500 000 in the form of equity, quasi-equity, or hybrid financing to social enterprises in the EaSI Participating Countries. It will serve to lower the transaction costs for these small investment tickets and thus help overcome a market failure in the social enterprise finance market.
Activities related to the preparation, conclusion and follow-up of long term risk capital investments into social enterprises may be funded under this call for proposals. This may include a mix of activities such as:
travelling to meet (potential) investees;
screening and processing investment applications;
preparing legal documents, potentially with a lawyers' advice;
carrying out the due diligence, including assessing (potential) impact of the investment;
providing investment readiness, scaling readiness or business restructuring support;
bringing in co-investors;
managing the investments and monitoring social impact.
The expected result is an increased number of risk-capital investments of below EUR 500 000 in social enterprises.
Deadline for submission: 21st of March 2019.
Click here for more details on the call for proposals.