The European Bank for Reconstruction and Development (EBRD) will strengthen its support for young entrepreneurs in Georgia with a new loan of up to €15 million to ProCredit Bank Georgia for on-lending to micro, small and medium-sized enterprises (MSMEs), the Bank announced on 2 March.
The financing is provided under the EBRD’s Youth in Business Caucasus programme and is the first transaction under that programme in Georgia. It will increase access to finance for private youth-led MSMEs, helping young business owners to start, grow and formalise their businesses.
Through this partnership, ProCredit Bank Georgia will expand lending to private businesses owned or led by entrepreneurs under the age of 35, including first-time borrowers and businesses located outside the capital, Tbilisi.
“Young entrepreneurs often face significant barriers in accessing finance due to their limited credit histories and collateral; the facility is designed to address these gaps and support more inclusive economic growth,” says a press release by EBRD.
In addition to financing, the EBRD is also providing advisory services, which will help to strengthen the bank’s capacity to serve youth-led businesses and provide non-financial support to entrepreneurs. These services will focus on improving business skills, competitiveness, digitalisation and long-term resilience.
