It is an institution belonging to the Inter-American Development Bank (IDB), defined by themselves as an “innovation laboratory”, since they bet on entrepreneurship and carry out experiments where large sums of money are involved, in order to test new models that serve inspiration for the private sector, in order to solve problems in society and with the aim of promoting economic development in Latin America and the Caribbean.
It was created in 1993 by the Inter-American Development Bank to continue its efforts to reduce poverty in the region and promote economic growth through the development of the private sector.
In this sense, the Multilateral Investment Fund (MIF) has as its main focus eradicating poverty and vulnerability in nations, by supporting small agricultural producers and emerging companies, which are capable of creating opportunities for economic development through their growth. own.
The MIF provides technical assistance, invests in microfinance and equity funds for small private sector companies in Latin America and the Caribbean. All this in order to increase access to financing, markets, capacities and basic services for those who wish to undertake on behalf of their community. All this technical cooperation and financing is carried out through a social entrepreneurship program.
This organization operates thanks to the twenty-six borrowing member countries from Latin America and the Caribbean belonging to the IDB Group and local partners, mostly from the private sector, who offer capital for the financing and execution of projects.
The MIF provides loans, grants, investments, guarantees, quasi-equity investments, and consulting services, not only to private sector companies but also to non-governmental organizations, trade associations, financial institutions and public sector agencies and foundations, which through their projects benefit low-income populations, boosting their farms, homes or businesses.
Most of the MIF financing is carried out as a subsidy, which can reach a project of US $ 2 million. They also make loans that can be repaid in the long term, which can reach one million US dollars and capital investments that can reach US $ 5 million.
