SODEBUR microcredit facility

A partnership between SODEBUR (Provincial Governmental Agency) and CEEI Burgos was developed in order to offer rural entrepreneurs credits under EUR 25,000 without the request of a guarantee and at a favorable interest rate (1,5%-3%). This product is exclusive to the Burgos province which counts with 361.021 citizens and it also intends to reduce youth migration to other bigger cities.
CEEI Burgos designed the specific features of the product, in line with the social objectives pursued by a public organization like SODEBUR that in 2013 allocated a budget of EUR 125,000 for the disbursement of microloans. Public funds from the province are used by CEEI Burgos which is in charge of the management of the loans. Loan officers from CEEI Burgos after receiving the loan application and doing an analysis of the proposal, schedule an in situ visits to entrepreneurs. Once the assessment of the client’s project is complete it is presented to the credit committee that is composed by representatives of SODEBUR, Burgos Chamber of Commerce, Burgos young Managers Association, Burgos Federation of Business Associations and the Provincial Government of Burgos to ensure that social objectives set by the partners are met. After the decision of the credit committee CEEI Burgos contacts’ the entrepreneur to notify the decision and do the necessary follow up. CEEI-Burgos carries out the management and follow-up of the whole operation.