New financing lines to fund projects by entrepreneurs and small businesses

At its most recent meeting, held on June 29, 2021, the Council of Ministers approved three new financing lines, to be managed by ENISA and worth €98.5 million in total. They are aimed at SMEs, with financing ranging from €25,000 to €1,500,000.

These three new financing lines are aimed at SMEs incorporated as commercial companies, which may apply for the technology-based companies line, endowed with €20.5 million; the SME 2021 line, with €57.5 million; and the young entrepreneurs 2021 line, with €20.5 million.

Participating loans (préstamos participativos), with amounts ranging from €25,000 to €1,500,000, will be allocated to the various financing lines for entrepreneurs and SMEs. No guarantees are required beyond the business project itself and a solvent management team.

Young Entrepreneurs Line

This is the guarantee line aimed at new entrepreneurs or recently incorporated businesses (startups) created by young people. The purpose of this line is to undertake the investments required by the business project in its initial phase.

Young people with a newly launched project must meet the following requirements to access this line:

• The business must have been incorporated no more than 24 months before the application.

• The majority of the share capital must be held by individuals aged 40 or under.

• The shareholders must contribute, through share capital or equity, at least 50% of the loan amount.

Entrepreneurs Line

The Entrepreneurs Line is aimed at supporting the early stages of small businesses and companies whose owners or directors are entrepreneurs, with no age limit. The requirements to apply for this line are:

• The business must have been incorporated no more than 24 months before the application.

• Equity must be at least equal to the amount of the loan.

• Co-financing of the financial needs associated with the business project.

Growth Line

The Growth Line seeks to support the business projects of companies interested in expanding their business or improving their competitiveness. The requirements to apply for it are:

• Equity must be at least equal to the amount of the loan.

• Co-financing of the financial needs associated with the business project.

• For approved loans exceeding €300,000, the company must have third-partyly audited financial statements for the most recently closed fiscal year.