Palladium`s Request for Applications (RFA) Number: 217810-FI-2024-002
Issuance Date: April 25, 2024
Due date for submission of questions: May 13, 2024 (18:00 Tbilisi time)
Due date for answers: May 15, 2024
Closing Date for Receipt of Applications: June 25, 2024 (18:00 Tbilisi time)
Total funding available (all grants): $250, 000
Anticipated Number of Grants: 5
The USAID Financial Innovation Program (the Program) is a five-year USAID funded program launched in February 2023. The purpose of the Program is to increase the flow of diversified investment resources and innovative financial products to Georgia`s private sector in order to expand businesses, create jobs, and attract additional private investment.
The Program expects to mobilize $325 million in financing. Of this amount, at least $80 million will consist of equity and quasi-equity financing. At least $100 million will be mobilized from private sector sources, and at least $200 million will consist of additional financing for startups and SMEs. Particular attention will be given to broadening the financial sector (engaging non-bank financial institutions and the securities markets), and not less than $50 million in debt financing will come from outside the banking sector.
Over the five-year activity period, the Program will unlock $200 million in growth-oriented capital by creating and expanding the supply of asset-backed lending products. To stimulate the supply of asset-backed products (factoring, warehouse receipts financing, invoice discounting and other supply chain and working capital financing instruments), the Program will facilitate transactions to drive capital investment and catalyze financial institutions` (FIs) engagement with Georgian enterprises, especially the target SME segment. FIs committed to expanding or creating a supply of asset-backed products, predominantly but not exclusively targeted at SMEs, can apply to participate in this grant activity. To be eligible to receive a grant award, FIs must have the capacity to mobilize asset-backed financing and develop eligible products that meet the qualifications listed in attached RFA document.
