If you have a technology company with innovation in its DNA, you can access one of the best ways to obtain funding: grants and grants.
The Expansion Direct Line (LIC) is one of the most important tools of the Center for Industrial Technological Development (CDTI), designed to support Spanish companies in their growth and consolidation processes. This line of financing offers a unique opportunity for those companies that seek to expand their productive capacity, develop new lines of business or technologically improve their operations.
If your company is in the process of expanding and you are looking for attractive financing alternatives, the financing offered through the CDTI LIC line may be just what you need. Next, we'll tell you what it consists of, what are its advantages and how you can request it.
The Center for Industrial Technological Development (CDTI), under the Ministry of Science, Innovation and Universities, has its Innovation Hotline (LIC). This aid line is aimed at projects that involve investment or expenditure in innovative techniques or technologies or the substantial improvement of processes, products or services, regardless of the sector of activity in which they operate or their size.
Key Features of the Direct Line to Innovation
- Partially refundable loan: The CDTI offers funding that must be returned under two modalities: some text
- 7-year amortization period, with an interest of Euribor + 1%, including a grace period.
- 5-year repayment period, with an interest of Euribor + 0.5%, also including a grace period.
- Maximum intensity: The LIC line covers up to 85% of the total project budget, with a small part that can be considered a direct grant (up to 7%). Companies must cover the remaining 15% with their own resources or external funding.
- Minimum investment: Projects must have a minimum amount of 175,000€.
- Advance payment: An advance payment of 50% of the aid can be obtained, up to a limit of 300.000€, without the need for additional guarantees.
Eligible expenses
Projects submitted for LIC can include a wide variety of eligible concepts, including:
- New assets: Both tangible and intangible.
- Personnel costs: Directly related to the development of the project.
- Materials and consumables: Necessary to carry out the project.
- External collaborations: As the services of suppliers or research centers.
- Audits: Costs associated with justifying the aid.
Restrictions for Large Companies
In the case of large companies, intangible asset costs they will only be bankable up to a maximum of 50% of total costs of eligible investments.
Main conditions of the CDTI LIC line
- Project duration: Projects must be executed within a maximum period of 24 months.
- Incentive effect of aid: The application must be submitted before starting work in the project. This means that no resources (equipment, materials, works, etc.) must have been committed before making the request.
- Standing call: Unlike other aids, the LIC line has a Open call all year round, allowing companies to submit their applications at any time.
In order to be eligible for CDTI LIC aid, projects must be classified in one of the following three points:
- Incorporation and active adaptation of emerging technologies in the company, as well as the processes of adapting and improving technologies to new markets.
- Application of industrial design and product and process engineering for your improvement.
- Application of a new or significantly improved method of supply or production, including significant changes in techniques, equipment and/or software.
What do you need to apply for an LIC loan?
To access funding for the LIC line, companies must meet certain fundamental requirements:
- To be a Spanish company with fiscal headquarters in Spain.
- Execution in Spain: Projects must be carried out on the national territory.
- Economic solvency: Companies must demonstrate that they have the financial capacity to carry out the project.
- Project classification: It must align with one of the three objectives mentioned above (technology, improvement of processes or production methods).
How to request the CDTI LIC?
To apply for the CDTI Expansion Hotline, it is necessary to follow certain key steps to ensure that the project meets all the eligibility criteria. Here are the main steps:
- Preparing the application: It is essential to prepare a solid application report that describes the objectives of the project, its impact and the technical and financial viability. A detailed budget must also be submitted for what the requested investment will be used for.
- Presentation through the CDTI platform: All documentation is sent through the CDTI electronic platform. Once all the documentation has been uploaded to the Entity's platform, the organization's experts will analyze the request to evaluate if it meets the requirements and may request questions or additional information to assess in more detail the fit of the project with the funding line.
- Technical and financial evaluation: The CDTI reviews the viability of the project from a technical and economic point of view. This includes analyzing whether the project is aligned with the objectives of the funding line.
- Termination and formalization of the contract: If the project is approved, a financing contract is formalized between the company and the CDTI, specifying the specific conditions of the aid.
- Execution and justification: During the execution of the project, it is necessary to demonstrate that the investment has been used as planned. This includes the submission of reports and proof of expenditure.
Is LIC the same as LIC A? What is the Direct Line to Expansion?
It is important not to confuse the LIC program with the program CLICK TO , also from the CDTI. This is a variant of the first of the Direct Line to Expansion.
Beyond the name and the fact that it is a continuous call throughout the year, the two programs have few more similarities. LIC A also seeks to promote innovation, but in a more localized way. Thus, its purpose is to promote it in certain Spanish regions, improving the capacities of companies. Since last April, this line has been extended to the entire regional aid map, not focusing only on some specific autonomous communities.
This is a partially reimbursable grant that covers up to 75% of the approved budget (the LIC reaches 85%) and can be returned in 7 years, with a grace period of 1 year from the end of the project. The advantage in this regard is that the deadline for returning the aid is somewhat longer.
The LIC A program finances eligible expenses on tangible assets, consisting of facilities, machinery and equipment, and also intangible assets, such as patents, licenses, know-how and other intellectual and industrial property rights. Something that does share with the LIC line is the execution period (at most 18 months) and the minimum budget (175.00 euros). The CDTI has set a maximum of 30 million euros for projects that aim to obtain the LIC A.
LIC A: Investment grants in assisted areas.
Projects eligible for funding.
- Initial investment grants: tangible and intangible assets related to the creation of a new establishment, the expansion of the capacity of an existing establishment, the diversification of an establishment's production into products that were not previous
- Initial investment grants for a new economic activity: investment in tangible and intangible assets related to the creation of a new establishment or the diversification of the activity of an establishment, provided that the new activity is not an identical or similar activity to that carried out previously in the establishment. Projects that promote activities in the steel, coal, shipbuilding or synthetic fibers sectors will not be eligible for aid. Aid to the transport sector and related infrastructure is also excluded. And to energy production, distribution and infrastructure, as well as to the fishery and aquaculture products sector, to the primary agricultural production sector and to aid aimed at facilitating the closure of uncompetitive coal mines.
Application Deadline: Open call throughout the year, with no competitive form of competition.
Entity/body convening the grants: Center for Industrial Technological Development (CDTI)
Aid under the LIC A line requires that once the creation of the new economic activity is completed, investment must be kept in the place where the project is being developed by an SME.
Unlike other consulting firms, we operate with 100% success, that is, we run risks and only charge when the entrepreneur obtains funding. If your company meets these characteristics and you want to apply for a CDTI LIC, contact us and receive support to finance your startup through this line.
