Editor’s note: This article was first published in November 2011, and describes an ENISA credit line open then: a maximum of 50,000 euros, one-year Euribor plus 2%, majority owners aged 35 or under and a 4-year term. ENISA’s lines, terms, parent ministry and application channels have changed since.
Through ENISA (Empresa Nacional de Innovación, Spain’s National Innovation Company), and once we’ve been turned down for financing through the “orthodox channels” (banks), we can turn to this publicly owned company attached to the Ministry of Industry, Tourism and Trade and apply for financing, both for starting our business and for expanding our company.
The support ENISA offers usually comes as credit lines in the form of participative loans (préstamos participativos). A financing line for entrepreneurs is currently open. Its conditions and application process are as follows:
Objective
To encourage the creation of companies promoted by young entrepreneurs by giving them access to preferential financing with their business project as the only guarantee. The loan is intended for acquiring the fixed assets and working capital needed to develop the business.
Who can apply for these participative loans
Any SME that meets the following requirements:
- It must carry out its activity, and make the investment the loan is for, within Spain.
- It must set up a trading company or, if the company already exists, it must have been incorporated no more than twenty-four months before the application is submitted.
- The business plan must include innovative aspects, whether related to the product and/or service, its production, marketing, management, etc.
- The promoters must sign, as a sign of the entrepreneur’s commitment to and involvement in the business project.
- It must be an SME with a corporate form, in accordance with the definition in the Recommendation of the European Commission of 6 August 2008.
- It may operate in any sector except real estate and finance.
Financial terms of the participative loan
- Maximum loan amount: €50,000.
- Minimum interest rate (fixed): one-year Euribor + 2.0%.
- Variable interest rate: determined by the company’s return on equity.
- Total interest rate: fixed + variable = 6%.
- Arrangement fee: 0.5%.
- Assessment costs: 0%.
- Cost of guarantees: no guarantee required.
- The beneficiary company must contribute, in the form of equity, at least 15% of the amount of the loan received from ENISA. Contributions may be in cash or in kind, provided contributions in kind do not exceed 50% of the beneficiary company’s contribution.
- Maximum repayment period: 4 years.
- Grace period: 6 months on repayment of the principal, but not of the interest.
- The person or persons holding a majority of the company must be no older than 35.
- If the loan is repaid early, a fee of 2% of the amount repaid will be charged.
How to apply for the participative loan
- Through the Young Entrepreneurs’ Associations
- Through the CEEIs (European business and innovation centres) that are members of ANCES
- Through Pimec
- By filling in the questionnaire directly on the ENISA website
Featured image: Luis García, CC BY-SA 3.0, via Wikimedia Commons.
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