The Brave Circle Fund is a 5-million euro microcredit project funded by the personal assets of Renzo Rosso, founder and president of The Only The Brave Foundation to support families, small and medium businesses and start-ups affected by the earthquake in the Italian region of Emilia-Romagna. The objective is to provide small loans to those who would otherwise be excluded from the traditional banking system.
Renzo Rosso chose Etimos Foundation Onlus to manage this project. Etimos has been operating for many years in the microfinance sector, and has proven experience in post-emergency contexts – starting from another Italian region ravaged by an earthquake: Abruzzo.
The allocation is done through regional banks, with an agreement ratified by ABI (the Italian Banks Association) defining terms and conditions. In this way, banks themselves commit to leveraging the initial 5 million euros, and raise the available sum up to 25 million euros. Furthermore those applying for loans are not required to provide collateral.
A group of volunteers evaluate all requests, support people who will receive loans, and provide technical expertise. Local socio-economic agents reduce management costs, freeing more resources to the beneficiaries of the project.
The Only The Brave Foundation will be involved as a committee member that supervises the fund.
Official website: http://www.mxit.it/
- 5M € initial investment
- 7 years is the deadline to repay the credit
- 25M € available after leverage by banks
- 25K€ is the average for a small business microcredit
- 5 - 10K€ is the range for a family microcredit
- 35 - 50K€ is the range for a cooperative microcredit