Open Webinar - Directed Lending for SMEs: How to Make It Work

One way of targeting investment to the businesses that need it the most is through an approach known as 'directed lending'. It's an approach increasingly used by development finance institutions (DFIs) in recent years and involves lending to financial institutions so that they lend to specific types of customer. This might include small and medium-sized enterprises (SMEs), as well businesses with a focus on energy efficiency, renewable energy or that are women-owned.

It is achieved by providing funding to a local financial institution so they then in turn lend to eligible projects or customers. At times it involves building capacity within the financial institution so that it can provide the finance required by the target projects or customers. Directed lending may also include the use of incentives.

The purpose of the webinar is to share the findings from a CDC/GBRW study in Directed Lending practices across the DFI community, and to stimulate discussion on an activity that is widely practiced in the hopes of sharing best practices. See the CDC/GBRW study: Directed Lending: Current practices and challenges