Institut Català de Finances provides the funds; Banc Sabadell and CaixaBank market the product; and the Catalonia Regional Government Department of Business and Employment will bear 70% of the risk on the loans, which are designed to finance investment projects and/or working capital needs.
Institut Català de Finances (ICF) has renewed the Emprende line of funding for entrepreneurs, self-employed workers and shops that it has maintained since 2012 in cooperation with the Catalonia Regional Government Department of Business and Employment and Consorci de Comerç Artesania i Moda (CCAM).
This line, with a budget of over €21 million for 2015, aims to fund investment projects and/or working capital needs of entrepreneurs, self-employed workers, micro and small enterprises, and also mid-sized firms in certain segments of the retail and services sectors.
ICF provides the funds and coordinates applications. Banc Sabadell and Caixa Bank market the line and distribute the loans.
In order to to assist applicants in obtaining bank finance, the Department of Business and Employment will bear up to 70% of the credit risk. The loans may be used to acquire fixed assets (property, plant and equipment and intangibles) or for day-to-day working capital needs.
This year, the terms of the Emprende line are more favourable than in previous years.
Financial terms:
- Amount: minimum of €10,000 and maximum of €100,000 per borrower.
- Term: 5 years, i.e. a 1-year grace period and 4 years to repay the loan.
- Interest: 6-month Euribor plus a spread of up to 3.95%.
- Collateral: to be determined by the lender bank (CaixaBank and Banc Sabadell) as a function of the project.
Applications must be presented via the website of Institut Català de Finances at www.icf.cat; the deadline is 26 February 2016.
Since 2012, this line has funded 1,156 projects for entrepreneurs, self-employed workers and shops amounting to a total of €63.5 million.