ISBA

What ISBA does

ISBA (Sociedad de Garantía Recíproca) is a non-profit mutual guarantee society founded on July 18, 1979, in Palma de Mallorca — the first SGR established in Spain. The entity operates under Bank of Spain supervision (registry code 9801) and provides first-demand financial guarantees (avales) that enable small and medium enterprises (PYMES), self-employed workers (autónomos), and entrepreneurs in the Balearic Islands to access bank credit on more favorable terms than they could secure on their own. Its core product set spans investment guarantees (growth, internationalization, expansion), liquidity guarantees (working capital, credit lines, import/export, discounting), the Autónomos Exprés express product (up to €30,000 with immediate response), and sector-specific lines including ISBA-IDI for industrial innovation and FOGAIBA for agriculture and fishing.

ISBA does not lend money directly; rather, it acts as a "bank without money," issuing guarantees that banks accept in lieu of or alongside borrower collateral. The business model rests on three income streams: annual commissions on outstanding live risk (riesgo vivo), one-time study commissions at guarantee formalization, and government contributions to the Technical Provisions Fund plus subsidized financing lines (ISBA-CAIB). Re-guarantee from CERSA (Compañía Española de Reafianzamiento) and EU instruments (COSME, FEIE, Innovfin) reduces ISBA's risk exposure, while CAIB re-guarantee achieves a 7.7x leverage effect — each euro of public re-guarantee supports €7.7 of formalized SME financing.

The entity operates from three offices covering the archipelago (Palma, Maó/Menorca, Eivissa/Ibiza) with approximately 30 staff (75% women) and is governed by a Technical Commission and Executive Commission. Distribution is dual-channel: direct client engagement through offices and the isbasgr-online.es portal, plus a banking network of 10+ convention partners including BBVA, CaixaBank, Santander, Bankinter, Sabadell, and regional banks. As of end-2025, ISBA managed €368.5M in live risk across 4,014 beneficiary companies, had 11,795 member partners, and had formalized 31,835 avales totaling €1.7B since 1979. It maintains a 24.39% solvency ratio (3x the 8% regulatory minimum) and a 0.9% paid default rate — the lowest in the Spanish SGR sector.

Name

ISBA

Legal name

ISBA SOCIEDAD GARANTÍA RECÍPROCA

Website

https://isbasgr.es

Company type

Private

Founded year

1979

Operating status

Operating

Headcount range

11–50 employees

Short description

ISBA is a non-profit mutual guarantee society (the first SGR in Spain, founded 1979) providing first-demand financial guarantees to SMEs, freelancers, and entrepreneurs in the Balearic Islands, enabling them to access subsidized bank credit through partnerships with 10+ banks and the regional government.

Ownership category

akta.pro rank

Product category

SME Financing Guarantees

NAICS

Mortgage and Nonmortgage Loan Brokers (52231)

SIC

Loan Brokers (6163)

akta.pro primary industry

SBA/Government-Backed & Development Finance Loans (FSAKAGAI)

akta.pro secondary industries

National Development Banks & State Development Finance Institutions (DFIs) (BPADACAC), Private Sector & Blended Finance Arms (IFC-type) (BPADACAJ)

Keywords

• Mutual guarantee society
• SME financing
• First-demand guarantees
• Investment guarantees
• Liquidity financing

Headquarters

HQ city

Palma De Mallorca

HQ country

Spain

HQ region

Europe

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Annual guarantee commission on live risk (riesgo vivo): ISBA charges an annual commission on the outstanding risk (riesgo vivo) of formalized guarantee operations. This is the primary ongoing revenue stream for the entity.
2. Study/analysis commission: One-time commission charged at the time of formalizing a guarantee operation, collected upfront when the guarantee is notarized.
3. Government support contributions: The Govern de les Illes Balears makes extraordinary contributions to the Technical Provisions Fund (Fondo de Provisiones Técnicas) and provides annual subsidized financing lines (ISBA-CAIB) that subsidize interest rates and guarantee costs for borrowers.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

ISBA Sociedad de Garantía Recíproca (ISBA SGR) is a non-profit mutual guarantee society founded in 1979 in the Balearic Islands, Spain, that issues first-demand financial guarantees (avales) to entrepreneurs, self-employed workers (autónomos), and small and medium-sized enterprises (PYMES) to facilitate their access to bank financing. ISBA partners with more than ten banks and savings banks to deliver guaranteed loans under both standard market-rate terms and government-subsidized lines (ISBA-CAIB, ISBA-IDI, FOGAIBA) co-financed by the Govern de les Illes Balears and EU funds.

Product overview

ISBA is a mutual guarantee society (Sociedad de Garantía Recíproca) providing financial guarantees without being a bank. The company operates a unified portfolio of guarantee products organized around two core pillars: (1) Productos de inversión for business growth and expansion, and (2) Productos de liquidez for working capital and operational financing. These core offerings are supplemented by specialized programs including Créditos Aquisgran for specific sectors, the Línea ISBA-IDI for industrial innovation, and Línea FOGAIBA for agricultural and fishing sectors. Self-employed workers (autónomos) are served through the dedicated Autónomos Exprés product offering rapid access to up to 30,000 euros with immediate response. The company connects borrowers with banking partners through framework agreements (convenios) to deliver subsidized financing conditions. All products are backed by the Balearic Government (CAIB) through co-guarantee and subsidy programs.

Differentiator

Problem solved

Functional benefit

Products and services

• Autónomos Exprés Express financial guarantee product for self-employed workers (autónomos) offering up to 30,000 euros with immediate online response and subsidized costs, designed for rapid access to credit.
• Productos de inversión (Investment Guarantee Products) First-demand guarantees supporting business growth, internationalization initiatives, market expansion, consolidation, and project development for SMEs and entrepreneurs, improving their financing conditions.
• Productos de liquidez (Liquidity Guarantee Products) Guarantees facilitating access to working capital financing, credit accounts (cuentas de crédito), export/import lines, discounting operations, and other liquidity products to strengthen the financial position of businesses.
• Financiación para PYMES Financing guarantees for small and medium-sized enterprises (PYMES) to access credit on favorable market conditions through ISBA's guarantee backing.
• Financiación para Autónomos Financing guarantees specifically designed for self-employed workers (autónomos) to support business launch and ongoing operations in the Balearic Islands.
• Créditos Aquisgran Special credit program offered in collaboration with Aquisgrán, providing favorable financing conditions for SMEs and entrepreneurs in the Balearic Islands.
• Línea ISBA-IDI 2018 (Industrial Innovation Line) Industrial innovation financing line for Balearic SMEs offering up to 250,000 euros (maximum 750,000 euros) with 100% guarantee cost subsidy for 7 years and 2% interest rate subsidy through IDI subsidies.
• Línea FOGAIBA (Agricultural and Fishing Line) Agricultural and fishing sector financing line providing 1.5 million euros in liquidity support, with 100% subsidized opening expenses, study expenses, guarantee costs, and loan interest for the agricultural and fishing sectors of the Balearic Islands.
• ISBA-CAIB 2024-2025 Financing Line Biennial (bianual) subsidized financing line co-funded with 18.6 million euros from the Govern de les Illes Balears (CAIB), featuring 3% interest rate subsidy and 100% guarantee cost subsidy for up to 5 years, enabling savings of up to 64% on total financing costs for SMEs, autónomos, and entrepreneurs.

Quantifiable outcome

• 364.5 million euros in live risk and 142.9 million euros in approved operations in 2025, with historic highs across all metrics
• +5 more outcomes

Named customers4 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

18 partnerships are on record, tiered core, minor and flagship.

• Banco SabadellcoreChannel Partner/ Reseller/ DistributorLong-standing convention partner. Convention renewed and expanded to 50 million euros in September 2023. Over the last 4 years, 496 operations have been formalized totaling over 43 million euros. The partnership enables entrepreneurs, SMEs, and freelancers in the Balearic Islands to access financing in very advantageous conditions for both investment and liquidity operations through ISBA's subsidized lines.
• BankintercoreChannel Partner/ Reseller/ DistributorConvention partner renewed and expanded, most recently in June 2023 to include confirming operations. In 2022, Bankinter signed 31 operations with ISBA's guarantee for 5.1 million euros, tripling the previous year's figures. In 2023, 28 operations for 3.6 million euros were already formalized.
• CaixaBankcoreChannel Partner/ Reseller/ DistributorConvention renewed and expanded to 175 million euros in June 2021. CaixaBank formalized 250 guaranteed operations with ISBA in the first part of that year for 17 million euros. The partnership covers both investment and liquidity operations with subsidized lines.
• Banco SantandercoreChannel Partner/ Reseller/ DistributorConvention renewed and expanded to 30 million euros in May 2021, with a maximum amount per operation of 750,000 euros and maximum term of 10 years. In 2020, Banco Santander signed 69 operations for 5.9 million euros with ISBA's guarantee, a 36% growth over the previous year. Approximately 350 companies expected to benefit.
• BBVAcoreChannel Partner/ Reseller/ DistributorConvention renewed in July 2021. BBVA and ISBA partnership enables entrepreneurs, SMEs, and freelancers in the Balearic Islands to access financing in advantageous conditions through the ISBA-CAIB 2021 line with subsidized interest rates and guarantee costs.
• AbancaminorChannel Partner/ Reseller/ DistributorBanking convention partner listed on the ISBA website, providing financial guarantee distribution services to SMEs and freelancers in the Balearic Islands.
• Banca MarchminorChannel Partner/ Reseller/ DistributorBanking convention partner listed on the ISBA website, providing financial guarantee distribution services to SMEs and freelancers in the Balearic Islands.
• CajamarminorChannel Partner/ Reseller/ DistributorBanking convention partner listed on the ISBA website, providing financial guarantee distribution services to SMEs and freelancers in the Balearic Islands.
• Colonya (Colonya Caixa Pollença)minorChannel Partner/ Reseller/ DistributorBanking convention partner listed on the ISBA website, providing financial guarantee distribution services to SMEs and freelancers in the Balearic Islands.
• TargobankminorChannel Partner/ Reseller/ DistributorBanking convention partner listed on the ISBA website, providing financial guarantee distribution services to SMEs and freelancers in the Balearic Islands.
• Caja IngenierosminorChannel Partner/ Reseller/ DistributorBanking convention partner listed on the ISBA website, providing financial guarantee distribution services to SMEs and freelancers in the Balearic Islands.
• Govern de les Illes Balears (CAIB)flagshipStrategic or Co-development PartnerThe Govern is ISBA's primary institutional partner and protector. It provides extraordinary contributions to the Technical Provisions Fund (Fondo de Provisiones Técnicas), annual subsidized financing lines (ISBA-CAIB — 18.6 million euros for 2024-2025, biannual), and a re-guarantee system (reaval autonòmico). The Govern's contribution enables ISBA to achieve the leverage and solvency required for its guarantees to be considered sufficient by financial entities. For every euro of CAIB re-guarantee, 7.7 euros of financing are formalized for SMEs.
• CERSA (Compañía Española de Reafianzamiento, S.M.E., S.A.)coreStrategic or Co-development PartnerNational re-guarantee company (reaval) that provides counter-guarantees to ISBA's operations, reducing ISBA's exposure. ISBA's operations are systematically re-guaranteed by CERSA under the national re-guarantee system. CERSA's re-guarantee is complemented by the CAIB's regional re-guarantee.
• COSME (EU Programme)coreStrategic or Co-development PartnerEuropean COSME program provides guarantee support for ISBA's operations under the Investment Plan for Europe (Plan de Inversiones para Europa), managed by the European Investment Fund (FEIE/EIF). The COSME guarantee facility enables ISBA to offer more favorable conditions to SMEs.
• European Investment Fund (EIF) / FEIEcoreStrategic or Co-development PartnerThe European Investment Fund provides guarantee support under the Investment Plan for Europe (European Fund for Strategic Investments - EFSI / 'Juncker Plan') and Innovfin program (under Horizon 2020). These EU instruments enable ISBA to reduce risk and offer better financing conditions to SMEs and entrepreneurs.
• FOGAIBA (Fons de Garantia Agrària i Pesquera de les Illes Balears)coreStrategic or Co-development PartnerThree-party convention between FOGAIBA, ISBA, and the Govern for subsidized financing for the agricultural and fishing sectors. FOGAIBA subsidizes opening expenses, study fees, guarantee costs, and interest rates for agricultural and fishing operations of up to 1.5 million euros in capital (2018 line). 50% for fishing, 50% for agriculture, with transferable budget between sectors.
• Consell Insular de MallorcacoreStrategic or Co-development PartnerThe Mallorca Island Council contributed to ISBA's extraordinary COVID-19 financing line with 24 million euros in liquidity for SMEs and freelancers, as part of the 'Mallorca Reacciona' plan. This increased beneficiaries on Mallorca from 1,000 to over 1,300.
• Fundació BarcelóminorStrategic or Co-development PartnerPartnership through the 'Micresol' microcredit program with ISBA and BMN-Sa Nostra. Fundació Barceló contributes 10% of the microcredit operation as a surety and provides project evaluation. Targets microenterprises, freelancers, young entrepreneurs, and unemployed individuals starting businesses, with loans up to 25,000 euros.

Scale indicators15 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• OINARRI SGR: OINARRI is the second SGR operating in the Basque Country alongside Elkargi, providing guarantees to Basque SMEs. Smaller regional SGR structurally analogous to ISBA's footprint in the Balearic Islands.
• ISPA SGR: ISPA is the Principado de Asturias SGR, providing guarantees and financial support to Asturian SMEs and entrepreneurs under the same national SGR framework. Comparable to ISBA in mission, structure, and the role of regional government counter-guarantee.
• Avalmadrid SGR: Avalmadrid is the regional SGR for the Community of Madrid, providing guarantees to SMEs and freelancers with backing from the Comunidad de Madrid. Directly comparable to ISBA on business model (SGR), target segments (SME/autónomos/emprendedores), and government-counter-guarantee structure.
• IFIS SGR (Canarias): IFIS is the Canary Islands regional SGR, providing guarantees to SMEs in an island economy similar to ISBA's Balearic Islands. Relevant comparable for tourism-cyclical exposure and island-region SME financing dynamics.
• SOGARCA SGR: SOGARCA is Galicia's regional SGR, offering guarantees to Galician SMEs and self-employed through partnerships with regional banks and government backing from Xunta de Galicia. Same SGR regulatory model, same SME/autónomos target segments—useful comparable for volume, default, and solvency benchmarking vs. ISBA.
• Elkargi SGR: Elkargi is the largest mutual guarantee society in Spain, operating in the Basque Country with the same SGR model as ISBA—providing first-demand guarantees to SMEs and entrepreneurs backed by regional government co-guarantee (in this case, the Basque Government's re-guarantee system). Most directly comparable peer to ISBA on structure, mission, and product set.
• Avalis SGR (Institut Català de Finances): Avalis is the Catalan regional SGR providing financial guarantees to SMEs and entrepreneurs, with support from the Generalitat de Catalunya. Functionally identical to ISBA but operating in Catalonia; key comparable for benchmark portfolio size, re-guarantee terms, and product design.

Others

• SGR-Cesgar (Confederación Española de Sociedades de Garantía Recíproca): SGR-Cesgar is the national association representing all Spanish mutual guarantee societies, including ISBA. Not a direct competitor but the sector-level coordination entity through which ISBA engages on regulation (Bank of Spain), re-guarantee coordination with CERSA, and shared code-of-practice adoption.

Broad incumbents

• ICO (Instituto de Crédito Oficial): ICO is Spain's national state-owned development bank offering direct and indirect financing lines to SMEs, often channeled through banks and intermediated by SGRs like ISBA. It is a broad incumbent operating at the national policy level—compares to ISBA as a wider-portfolio public financier rather than a niche specialist.

Emerging players

• MicroBank (CaixaBank): MicroBank is CaixaBank's social microcredit bank focused on self-employed workers, micro-entrepreneurs, and small businesses—overlapping with ISBA's Autónomos Exprés segment. Partial overlap (microcredit rather than guarantees) but a direct competitor for the same end-borrower and an existing banking partner of ISBA.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/isbasgr
• LinkedInlinkedin.com/company/isba-sgr

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about ISBA