BBVA will make €20 million available to Catalan SMEs via a lending facility guaranteed by Avalis de Catalunya SGR.
BBVA, Institut Català de Finances (ICF) and Avalis de Catalunya SGR have signed an agreement to foster and facilitate access to funding for SMEs, in particular for their internationalization projects, with a view to contributing to the reactivation and growth of the Catalan economy.
The agreement was signed by BBVA's regional director for Catalonia, Christian Terribas, the CEO of Institut Català de Finances, Josep-Ramon Sanromà, and the CEO of Avalis de Catalunya SGR, Josep Lores.
As a result of the agreement, BBVA will make €20 million available to Catalan SMEs via a lending facility for long-term investment and working capital, linked to internationalization projects.
Avalis — and also the ICF — may guarantee the loans granted by BBVA via this facility. Companies may request these guarantees at BBVA branches.
This agreement strengthens the commitment of BBVA, the ICF and Avalis to drive the Catalan economy forward, and to help facilitate the international activity of SMEs, as well as their growth through new investment projects.
Characteristics of the Guarantees
The guarantees from Avalis — and from the ICF — are aimed at funding new investments or access to working capital lines granted by BBVA to SMEs in Catalonia.
In the case of guarantees to fund new investments, the guaranteed loan amount may be as much as 100% of the total cost of the investment project, and the term will be between 3 and 15 years, including a grace period of up to 2 years.
Guarantees for working capital may apply to new loans or renovations, provided they entail an increase of at least 10% in risk positions. The guarantee may cover up to 50% of this increase in risk positions.
The guarantees may cover various working capital products: credit lines and loans, commercial discount lines, factoring with recourse and reverse factoring for international sales, among others.
The term for working capital transactions will be a maximum of 5 years.