The Council of Europe Development Bank (CEB) signed a €25 million loan deal with BCR Social Finance to help Romanian micro-enterprises, farmers, and social businesses get access to credit they usually can’t find elsewhere, according to a CEB. The money will target underserved communities, especially women entrepreneurs, young people, and rural households who struggle to get traditional bank loans.
Over 3,260 micro-enterprises and farms plus around 125 social economy groups should benefit from better access to financing. The CEB is also throwing in two EU-funded grants worth nearly €1.5 million to maximize the social impact and help young farmers get training and mentoring.
Romania’s financial system still leaves many people behind, particularly in rural areas where banks don’t see enough profit to justify lending to small businesses. Women and young entrepreneurs face extra barriers getting credit, which keeps local economies from growing and pushes people to migrate to cities or abroad for work.
The first grant of €1.3 million will support 240 young agribusiness entrepreneurs under 35 through the Farmer’s Club Romania partnership. They’ll get training, mentoring, and coaching, with at least 80 receiving subsidized microloans to start or expand their businesses. The second grant of €190,000 will help BCR Social Finance build better digital systems and track the social impact of their lending.
“Our partnership with CEB strengthens financial inclusion for entrepreneurs in vulnerable communities,” said BCR Social Finance CEO Ștefan Buciuc. CEB Vice-Governor Tomáš Boček said the program “reflects the CEB’s commitment to promoting social inclusion and reducing inequalities by fostering entrepreneurship, strengthening local economies and building long-term resilience in Romania.”
BCR Social Finance is jointly owned by Erste Social Finance Holding and Banca Comercială Română, focusing on providing tailored financial products to underserved groups and reinvesting profits for social returns.
