The loans, up to €400,000, will be used to finance small and medium-sized businesses that have been affected by emergency situations such as accidents, earthquakes, landslides, fires, floods, storms and winds.
Barcelona, 9 April 2020. The Institut Català de Finances (ICF) and the Department of Enterprise and Knowledge of the Generalitat de Catalunya have created a new line of credit for companies affected by natural disasters. The aim is to facilitate the financing of investment and working capital projects for companies that have been affected by emergency situations such as earthquakes, landslides, floods or other natural causes.
This loan facility, called "ICF Emergency Business Loans", will serve to assist the recovery of businesses that fall within the scope of the Department of Enterprise and Knowledge.
With 10 million euros contributed by the ICF, this line of credit will enjoy a subsidy of the financial cost (up to 3.25% on working capital projects and up to 3.75% on investment projects) from the Department of Enterprise and Knowledge. Operations approved will also have part of the risk assumed by the Department of Enterprise and Knowledge.
ICF CEO Josep-Ramon Sanromà explains that this line of credit "reaffirms ICF's commitment to supporting the business fabric of the regions affected by natural disasters and to help mitigate their effects". Furthermore, with regard to the Sustainable Development Goals, "these loans are an opportunity to establish measures that can reduce disaster risk", said Sanromà.
The amounts of the loans range from €50,000 euros to €400,000. With regard to terms, applicants can request loans for investment projects up to a maximum of 10 years, including a 2-year grace period. For working capital projects, the term will be up to 5 years with a 1-year grace period.
Loan applications must be submitted through the ICF website (www.icf.cat).
About the ICF
The ICF is the public financial entity of Catalonia. It has as a main mission to promote the funding of the entrepreneurial fabric in Catalonia in order to contribute to the growth, the innovation and the sustainability of the Catalan economy. In this sense, it commits itself actively to the achievement of the Objectives of Sustainable Development in accordance to the Agenda 2030 of the United Nations.
The ICF acts as complement of the private financial sector, offering an extense range|gamma of solutions of funding centered on loans, guarantees and investment in venture capital. Since 2014 it is a member of the European Association of Public Banks|Benches (EAPB), that he|she groups big part of the banks|benches and the public financial entities that work in Europe.