IDB Invest, a member of the Inter-American Development Bank (IDB) Group, has provided a loan in Colombian pesos for the equivalent of $35 million to Banco de las Microfinanzas Bancamía S.A. (Bancamía). Loan funds will increase financing for rural and urban microentrepreneurs in Colombia.

Bancamía’s loans are primarily given to vulnerable population groups and are aimed at productive industries. The microfinance company verifies the conditions of the company that is requesting the loan, the level of debt and business history, guaranteeing the viability of the loans.

In Colombia, there are approximately 2.5 million micro, small and medium enterprises (MSME) that represent 90 percent of the country's companies and employ more than 65 percent of the workforce. According to data from the Bank of Opportunities and the Financial Superintendence, in 2018 only 20.6 percent of microenterprises had access to some form of formal credit.

The operation potentially contributes to five of the United Nations Sustainable Development Goals (SDG): No Poverty (SDG 1), Zero Hunger (SDG 2), Decent Work and Economic Growth (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Partnerships for the Goals (SDG 17).

To support the development of sustainable rural finance in Bancamía, IDB Invest carried out prior technical assistance with resources from the Climate Smart Agriculture Fund (CSAF). The result is the Crediverde Adaptación program, a financing credit line for rural microentrepreneurs aimed at investments for climate change adaptation and mitigation. Bancamía is the first private financial institution in Colombia that to have developed a financial product of this type.

About Invest
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable enterprises and projects to achieve financial results that maximize economic, social and environmental development for the region. With a portfolio of assets of $12.4 billion under management and 342 clients in 24 countries, IDB Invest works across sectors to provide innovative financial solutions and advisory services that meet the needs of its clients.

About Bancamía
Created in 2008, Banco de las Microfinanzas Bancamía S.A. is part of the BBVA Microfinance Foundation Group. It is the first banking establishment dedicated exclusively to delivering financial products and services to the microenterprise sector, with the aim of promoting the development of customers, who with their productive units, transform their quality of life and the economy of the country. It currently operates in 29 departments and in more than 950 municipalities in Colombia.