FavaFond is offering micro-loans to foreign-born and minority entrepreneurs in Sweden. A large, innovative and resilient group of entrepreneurs that lacks access to capital, advice, training and the networks necessary to start a business and grow. Fostering gender-equalled financial inclusion and business advice can improve ability and opportunities to become self-sufficient and economically active. In turn, empowering them to lead a fulfilling life integrating into Swedish society. Favafond’s mission is to become a key contributor for that change to take place in Sweden and beyond.
Since 2019, we have been testing our business idea/model, issuing initial loans as ”proof of concept”. Data has been collected and analyzed to learn customers profiles, preferences and needs. Also, we have been risk mitigating our lending process and adding complementary business services capacity in compliance with Swedish banking/financial regulation.
Our national platform of business advisors (i.e. accountants, coaches, etc.) and minority organizations (i.e. Community associations, startup incubators, etc.) has formalized recently. They are key partners to our business to facilitate access to loans for minority groups and support the improvement of our financial products and quality assurance of our lending process.
The financial vehicle to raise the capital needed to issue the loans is a social impact fund – Favafond Invest. This fund will be open to private and institutional investors seeking a financial return on their investment as well as social return with measurable results. FavaFond plans to expand its operation to the rest of the Nordic region once its business idea/model has been thoroughly tested in Sweden and a critical mass of clients established.