The first Romanian privately owned non-bank financial institution dedicated exclusively to social entrepreneurs launches the financing activity. Starting from March 20, 2023, social enterprises can apply for a loan.

The social economy ecosystem in Romania can now grow with the help of AFIN – the first non-banking financial institution (NBFI) in Romania, with Romanian capital, which offers alternative financial solutions dedicated to the social economy sector!

An initiative that crystallized within a project financed by the European Commission, implemented by ADV Romania, Patria Credit and FEBEA – European Federation of Ethical and Alternative Banks and Financiers.

The actual establishment of the institution was possible due to the 170 founding shareholders who believed in this project and who participated in the creation of the start-up capital.

A unique financing model on the Romanian market

• The first non-banking financial institution (NBFI) in Romania to include the social mission of the organization in its articles of association.
• The first NBFI in Romania to operate as a social enterprise (90% of profits will be reinvested).
• The first NBFI in Romania to offer loans exclusively to social enterprises.

The uniqueness of this institution comes from the fact that it will be able to make a creditworthiness analysis taking into account both the economic and financial viability of the project and the social impact indicators specific to operators in this sector.

According to the National Institute of Statistics, in Romania there are around 205,000 social economy operators, that employ approx.. 165,000 people. Of these, 20,000 generate revenues of over 10,000 euros per year. According to the Barometer of Social Finance in Romania, 20% of the social impact entrepreneurs want to have access to financing, and over 4,000 operators encountered barriers in accessing financing.

AFIN aims to credit a number of 500 social enterprises in the first 5 years. The average allocation of a financing will be 100,000 lei, correlated with the size of the activity and the repayment capacity of the beneficiary.

AFIN IFN S.A. will also provide assistance in the process of drawing up the credit application and during the lending process, including business support and mentoring.