Valencian startups and SMEs have the opportunity to benefit from different grants and lines of funding that may be useful for them to undertake new businesses or to have an economic cushion in these difficult times.
One of the agencies that provide them is the Institut Valenciá de Competitiveness Business (IVACE), which has several programs to facilitate internationalization, digitalization, etc. On its website you can consult those aids that are in force at the moment. Right now and until the end of December, for example, SMEs can apply for their energy efficiency grants. The objective of this measure is to grant aid for energy savings and efficiency to SMEs and large companies in the industrial sector, including the implementation of energy management systems, in the Valencian Community, thus encouraging the reduction of CO2 emissions and other polluting emissions, the improvement of air quality, energy savings and efficiency and respect for the environment.Its maximum amount is 30% of the eligible investment of the project, with a maximum of 1.5 million euros per project. However, the applicable percentages on the eligible cost are 40% for medium-sized companies and 50% for small businesses. Self-employed workers and companies can also benefit from the Moves II plan, with grants of between 30-50% of the eligible cost for electric bicycle lending systems, charging infrastructures and sustainable mobility measures.
Financing the IVF
The Institut Valenciá de Finances (IVF) also has different lines of financing for small and medium-sized companies in the Valencian Community. Due to the coronavirus, they have launched two different programs. The FEDER Coronavirus Participatory Loan Line comes, as its name suggests, from the European Regional Development Fund, and is a subordinated loan. Its nominal value is 300,000 euros and 2 million euros for disruptive projects and between 25,000 and 500,000 for non-disruptive projects. Beneficiaries have a repayment period of up to 10 years in the case of the first and between 6 and 8 years for non-disruptive projects. This line has no fees and is liquidated through overdue quarters. The interest rate of the loan is EURIBOR plus a 6.50% differential in the case of disruptive projects corresponding to the financial margin for the year. Those who qualify as such will have an interest rate discount of between 1.5 and 3.5 percentage points. Disruptive agents would be considered as those with a high potential for growth and innovation, those that contribute to job creation, those that arise from collaboration with knowledge-generating agents or from companies with universities or research centers.
IVF Liquidez Covid-19 Line
The novelty of the Institut Valencíá de Finances is the IVF Liquidity Covid-19 Line. It is aimed at self-employed workers and commercial companies that produce or carry out their activities in the region and whose purpose is to expand and renovate their facilities, machinery and equipment, hire labor and services or postpone the capital and interest shares of loans granted by the IVF. They are available to companies in any sector, except for those manufacturing weapons and derivatives, gambling and corresponding material, manufacturing, manufacturing or distribution of tobacco and controversial activities for ethical or moral reasons and prohibited by national legislation and those whose objective is real estate promotion (unless it is for disadvantaged groups). This loan cannot have a nominal value greater than 750,000 euros if the applicant is a microenterprise or self-employed and 2.5 million euros if it is a small or medium-sized company. It may be less than 25,000 euros if it is for the deferral of installments. This line has a term of 3 to 6 years, with a maximum grace period of 2 years. There are no opening or cancellation fees and the interest rate is obtained as a sum of the one-year EURIBOR and a margin that is established according to the applicant's credit rating.
IVF Line - FEDER Participatory Loans
The line aims to finance the growth of newly created companies, prioritizing innovation, through co-investment with other private investors. SMEs that have their headquarters or establishment or branch of production or development of activity in the Valencian Community can access participatory loans of between 25,000 and 30,000€, without the need to provide additional guarantees to those provided by the business project itself. The loan has a maximum term of 7 years and includes the possibility of a grace period for the amortization of capital of up to 3 years. The funding requested from the IVF will be linked to the mobilization of additional funding for SMEs through an instrument of capital or quasi-capital by independent private investors. Apart from these options, the IVF also has lines for large strategic projects and Fininval participatory loans for the Relaunch of Large Industries.More: Valencia IVF LoanPublic funding in co-investment
