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Fund for Capacity Building

Non-reimbursable financial assistance for MSMEs that incorporate conservation practices or sustainable biodiversity use into their businesses, products and services; for the Intermediary Financial Institutions (IFIs) that attend them; and for institutions that promote an enabling environment for the development and financing of biodiversity-friendly MSMEs (BF-MSMEs).

 

Assistance Fund

The purpose of this fund is to provide non-reimbursable financial assistance to MSMEs that incorporate conservation practices or sustainable biodiversity use into their businesses, products and services; to the Intermediary Financial Institutions (IFIs) that attend them; and to institutions that promote an enabling environment for the development and financing of BF-MSMEs.

 

Benefited countries

Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama.

 

Sectors attended

Agroforestry, organic agriculture, sustainable forestry management, certified aquaculture, sustainable fisheries, sustainable tourism, silvopastoral systems.

 

Assistance Modes

Pre-Investment:

Support for micro and small enterprises (MSEs). Support resources are allocated to:

  1. New Initiatives. Support for conducting studies required prior to the execution of a new biodiversity-friendly investment, based on a specific request with individualized justification and analysis, in order to ensure credit approval and funding with resources from the BF-MSME Support Program once the requirement of having the study results is met. The studies eligible for this support are those that an IFE requires an MSEs to present for credit approval and contract execution.
  2. Expansion and Diversification. Aimed at supporting existing enterprises that require expansion or diversification, based on a specific request with individualized justification and analysis, in order to ensure credit approval and funding with resources from the BF-MSME Support Program.
  3. Support for financing use. Assistance that ensures the proper use of the financing and project execution by BF-MSMEs. The studies eligible for this support are those that are required to prove the feasibility of an MSE investment for presentation to an IFI.

 

Associated Credit Assistance:

Support aimed at assisting individual biodiversity friendly MSMEs or groups of entrepreneurs, beneficiaries of the credits obtained using financial resources of the BF-MSMEs Support Program. The resources will be allocated to:

 

Strengthening Technical and Management Capacities. Support aimed at raising the technical and business skills of beneficiary MSMEs. Some examples of support include improvement to productive capacity, administrative/accounting record systems and analysis and/or record of impacts on biodiversity, among others.

 

Assistance for the Development of Sector Initiatives:

Support aimed at assisting MSMEs interested in biodiversity friendly activities and businesses, and financial institutions that use the BF-MSME Support Program.

 

The resources will be allocated to:

Financially support the organization or sponsorship of development initiatives (workshops, meetings, exchanges of experience, business conferences, fairs, procurement of services, sponsorships for events and publications that encourage BF initiatives, etc.) aimed at raising awareness about biodiversity friendly issues, removing barriers for financing, and promoting businesses and an enabling environment that favor the adoption of best production practices by BF-MSMEs operating in the same productive sector or values chain, among others.

 

Assistance to intermediary financial institutions in the BF-MSMEs Support Program.

Support for IFIs involved in the BF-MSME Support Program. The resources will be allocated to:

 

Capacity building of intermediary financial institutions (IFIs). Support aimed at IFIs that attend BF-MSMEs individually or in groups with credit funds from the BF-MSME Support Program to strengthen their service capacities for customers wanting to establish or expand BF-friendly MSMEs. Some examples of this support include guidelines for assessing priority productive sectors, systems for recording biodiversity impact, information systems, including accounting records and follow-up to BF investments, among others.