IFC Seeks Lenders for MSME First Loss Guarantee Facility
Why in the news
The International Finance Corporation (IFC) sought lenders to act as intermediaries for a new guarantee facility aimed at underserved small businesses.
Key facts
- Facility sits inside the MSME Finance Platform and gives eligible providers a first loss guarantee.
- Goals: show commercial viability and pilot new products and risk models; boost jobs and inclusive growth.
| MSME measure | Figure |
|---|---|
| Share of firms worldwide | 90% |
| Share of employment | 70% |
| Average share of GDP | 50% |
Eligibility
- Regulated banks, NBFCs, digital lenders, leasing and microfinance firms allowed to lend locally.
- Must pass IFC checks: ESRR, IDD, financial and operational capability, development impact.
About IFC
- Part of the World Bank Group; active in 100+ countries; FY24 commitments $56 billion.