The loans will be granted by the Institut Català de Finances. The Catalonia Regional Government Department of Business and Employment will subsidise this line of funding in the form of 2.2 points of the interest, using proceeds from the tourist tax.
The Department of Business and Employment, through Institut Català de Finances (ICF), has created a line of funding in preferential conditions for hotel companies, in order to promote the refurbishment and renovation of hotels in Catalonia.
In accordance with the order published in the Official Catalonia Gazette (DOGC) today, these companies may benefit from a subsidy of 2.2 points of the interest rate applied to loans granted via this line of funding.
For SMEs, interest rates on loans may be as low as the 12-month Euribor +0.1%, thanks to the additional 1-point advantage provided by the European Investment Bank (EIB) for companies meeting its requirements.
Hence, interest rates on loans granted are as low as the 12-month Euribor +0.1% for SMEs, and the 12-month Euribor +1.1% for other companies.
The main goal of this line of funding, and the added advantage of the interest rate subsidy, is to provide access to financing for hotel companies and foster investment to refurbish and renovate their establishments and enhance their competitiveness.
The goal is to mobilise some €40-50 million in investment via this line of funding.
Proceeds from the Catalan tourist tax (IEET) will be used to subsidise the interest rate.
Conditions of the funding line (2015):
- Investment per hotel bed: From €2,500 to €6,000 (depending on the category)
- Loan amount: Minimum: €60,000 // Maximum: €2 million
- Beneficiary requirements: any hotel company // 25 years old // Municipality < 150,000 inhabitants
- Terms of the ICF loan: 12-month Euribor +3.30%
- Department of Business and Employment Subsidy: 2.20%
- European Investment Bank (EIB) financial advantage*: 1%
*This financial advantage only applies if the borrower is an SME and fulfils the EIB's requirements.
Loan term: 10 years
Investment cannot be earmarked for maintenance or conservation of the hotel, but must ensure a real transformation of the establishment, attaining substantial and significant improvements in terms of the quality of the tourist experience, energy efficiency and accessibility.
Applications may be filed with the Department of Business and Employment and/or the ICF until 31 December 2015 or until the budget has been used up.