Support Program for Biodiversity Friendly MSMEs

The Central American Bank for Economic Integration (CABEI) is a multilateral financial institution whose mission is to promote the integration and balanced economic and social development of the Central American countries. As part of its Strategy to Support Micro, Small and Medium Enterprises (MSMEs), CABEI seeks to support their sustainable development and the financial system that serves them in order to contribute to the generation of employment and wealth.


Pursuant to this Strategy, CABEI has established a Support Program for Biodiversity Friendly MSMEs (BF-MSMEs) to promote financing for MSMEs that incorporate the biodiversity protection and conservation in their business, products and services.


Program Goal

The program aims to support biodiversity friendly businesses, including:

  1. Businesses that change their production or processing system to expand wildlife habitats and/or reduce damage to them and to encourage the growth of biodiversity-friendly practices, such as cultivating organic crops that incorporate native trees into the productive system.
  2. Businesses that stimulate markets for goods and services produced with biodiversity-friendly methods, such as the opening of stores specialized in selling organic products.
  3. Businesses that due to their nature or location foster biodiversity conservation, such as sustainable rural tourism associated with protected areas.
  4. Businesses that reduce their negative impacts on biodiversity, for example by using fishing methods that avoid the capture of mammals, birds and reptiles.


Program Objectives

  1. Facilitate financing to MSMEs that incorporate the protection and conservation of biodiversity in their business, products and services.
  2. Expand the product offering to the BF-MSME financial sector.
  3. Assist and encourage MSMEs to generate BF activities and businesses.
  4. Promote an enabling environment conducive to the growth of BF-MSMEs.


Beneficiary Countries

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


Participating Institutions

The loans are provided through intermediary financial institutions (IFIs) that meet CABEI’s eligibility requirements, including banks, microfinance institutions, credit unions, cooperatives and NGOs, among others.


Final Beneficiaries

Beneficiaries include owners of MSMEs, as well as people with an entrepreneurial spirit that wish to develop or improve their productivity and competitiveness levels through biodiversity-friendly productive activities.


Economic Activities Attended

Production, services, agroindustry, industry and commerce in priority productive sectors, which include agroforestry, sustainable tourism, organic agriculture, sustainable forestry management, certified aquaculture, sustainable fisheries and silvopastoral systems. Loans for personal use are excluded. For more information please contact the CABEI Regional Office in your country.


Terms and Conditions

  1. Destinations: Working capital, pre-investments and reimbursable technical assistance.
  2. Terms: Up to 10 years and.
  3. Grace Period: Up to 24 months depending on fund use.
  4. Interest Rates: The interest rate applicable to the IFIs is set based on market rates and is revised each quarter or sooner if necessary. The interest rate that IFIs apply to end users is defined according to their own internal policies.
  5. Guarantees: We request endorsement of the portfolio generated with CABEI resources in guarantee, or another existing A or B portfolio of the borrower amounting to no less than 100% of the total balance of the global credit line. In special cases, CABEI may require other specific complementary guarantees. The IFIs decide on the guarantee requested of the final beneficiaries in accordance with their own policies.
  6. Payment: Payments of a loan requested from CABEI can be done quarterly or biannually according to the needs of the IFI and of the final beneficiary.


Resource Use

 In order to streamline and strengthen CABEI’s participation in the BF-MSME sector, the financing that is granted in the framework of the Support Program for BF-MSMEs must be justified in a single Resource Utilization Sheet (F1-AB) available in an electronic format with instructions provided by CABEI.


Financing allocated to the IFIs in the framework of the BF-MSME Support Program is carried out pursuant to the following details:







FROM 1 TO 100


Up to US$10,000
Up toUS$1,000,000

Pre-investment and reimbursable technical assistance

Up to 2 years
Does not apply

For microenterprises sub loans must be as close as possible to the disbursement requested to CABEI.

For small and medium enterprises sub loans must be equal to the disbursement requested to CABEI.
Working capital
Up to 3 years
Up to 6 months

Fixed investment including: Fixed assets / productive housing / commercial premises / mergers and acquisitions

Up to 10 years
Up to 24 months

* The use of resources complies with the two reference parameters.