IVACE IVF loan: Funding for Valencian startups and SMEs

To date, IVF has been responsible for strengthening initiatives for the modernization of the tourism and agri-food sectors, in addition to encouraging the growth of business projects of young Valencian entrepreneurs. The objective of IVF is to contribute to the growth of companies in all their possible phases, such as the initial phase, internationalization, consolidation and growth. IVF has multiple loans, from a line of financing for entities in the children's sector to a line for subsidized loans for sustainable development. We will focus on the line IVF FEDER Participatory Loans And the line IVF Investment and Working Capital.La IVF FEDER Participatory Loans line its objective is to finance the growth of newly created companies, prioritizing innovation, through co-investment with other private investors in projects developed by companies whose headquarters, establishment or branch of production or business development are based in the Valencian Community. As the name suggests, the financing instrument is a participatory loan with an amount that ranges from a minimum of 25,000€ and a maximum of 300,000€. The repayment period is a maximum of 7 years with the possibility of a grace period of up to 3 years. The early cancellation fee is 10% of the amortized amount and upon liquidation, loans will be amortized for overdue quarters. The loan has no additional guarantees than those provided by the business project itself.The nominal interest rate of the transaction is obtained as the sum of a) the EURIBOR interest rate for one-year deposits, with a minimum value equal to 0%, and b) the financial margin for the year, equivalent to the financial return recorded by the borrower during the year in which the interest is settled, with a minimum value equal to 4% and a maximum value equal to 9%. For these purposes, financial return is defined as the percentage that represents the result of the year before taxes on the borrower's own funds at the beginning of the year. A grant of 1.75% will be applied to the resulting interest rate. The loan will be formalized through a Loan Agreement in a public document, in which all the requirements and conditions will be set out. These Loan Agreements will be subject to Private Law. As for the disbursement of the operation, it will be carried out once or in partial disbursements, depending on the borrower's request. The other line we want to talk about is IVF investment and working capital. The objective of this line of funding is to contribute to the development of investment projects whose objective is preferably internationalization, business consolidation and employment generation, and the advance of grants granted by any governing body of the Generalitat Valenciana. Unlike the previous line, IVF investment and working capital is an ordinary loan and the amount is much higher. The minimum that can be financed is 200,000€ and the maximum is 5 million of euros and up to 80% of the investment project. As it is a larger line, its deadline and its shortage are also greater. The amortization period is up to 15 years with a grace period of up to 3 years. The fees vary depending on the credit quality of the accredited person. As for interest rates, Euribor goes to Euribor for one year plus a differential that will be determined based on the quality of the risk. The resulting rate may be reduced by 0.25% if it is possible to affect the project to funding from the European Investment Bank (EIB). Investment guarantees vary depending on the viability of the investment project, the solvency of the applicant company and the characteristics of the requested loan. In addition, as a general rule, personal bonds will not be taken as a guarantee. Finally, the possibility of co-financing with another financial institution is contemplated as long as it is with the same conditions and guarantees.How to apply for an IVF?If you don't have time or want to increase your chances of success to receive an IVF loan. At Intelectium we specialize in financing for Startups and SMEs and we can relieve you of all the work involved in preparing, applying and managing them to get the loan you need. Unlike other consulting firms, we work 100% successfully, meaning that we are at risk and we only charge when the entrepreneur obtains the funding. If your company is located in the Valencian Community, meets these characteristics and you want to apply for an IVF loan, contact us hither and receive support to finance your startup through this line.