The main objective of SODECAN is to offer several lines of financing to support the creation and consolidation of small and medium-sized Canarian companies.
In 2018, the Canary Islands Finance Fund 1 was created as a means of providing resources to the different financial instruments provided for in the Canary Islands FEDER Operational Program 2014-2020. In the same agreement, SODECAN was appointed as Fund Manager. Sodecan contributes to the construction of the economy of the Canary Islands by providing access to finance for entrepreneurs. It offers three main lines of funding:
- Creation and development of innovative SMEs
- Business innovation line for SMEs
- Energy savings and efficiency and renewable energy line for SMEs.
Creation and development of innovative SMEs
-Objective
: To promote the creation and development of innovative SMEs, that is, those that base their activity on the intensive domain of knowledge. It also encourages the transfer of research to the business environment and encourages private investment as a complement to public contributions.
-Type of funding:
Participatory loan without fees or requests for guarantees. The maximum amount of the loan will be €200,000 or 85% of the eligible costs of the project.
-Main conditions of funding:
- The maximum loan repayment period will be 10 years, including a maximum grace period of 5 years.
- Quarterly amortization.
- Two different interest rates: During the first tranche, 1-year Euribor +3.35% will be applied. In the second tranche, interest will vary depending on the evolution of the beneficiary's activity.
- Disbursement preferably by milestones.
-Beneficiaries:
SMEs constituted as unlisted capital companies with a permanent establishment in the Canary Islands, which can prove that they have not been able to obtain financing under market conditions.
Applicant companies may choose to receive funding from one line or another depending on the phase in which the project is in. In the case of the Creation line, the capital provided by Sodecan must be used to finance the development and commercialization of products.
-Main requirements:
- Not belonging to a sector not eligible for ERDF (fishing, agriculture, processing of agricultural products)
-Have a maximum age of 5, to qualify for the Creation line, or 7 years, in the case of the Development line.
-Have a permanent establishment in the Canary Islands.
-To have an investment purpose in the Canary Islands.
- Have full capacity to receive public money.
-Eligible expenses: Eligible expenses are divided into three large blocks.
-Tangible assets: Machinery, equipment, software, etc.
-Intangible assets: Those that do not have a physical or financial materialization, such as patents, licenses, or other intellectual property rights.
-Operating costs: Costs of personnel, materials, contracted services, communications, energy, maintenance, rent and administration, + auditing.
-Duration of the project: The project will have a maximum duration of 1 year, and may be extended by 6 more months on an exceptional basis if the beneficiary proves and justifies the delay in execution.
-Evaluation of the project: The projects will be evaluated based on the degree of innovation they present, as well as on the basis of the team's capacity for the development of the project and its viability.
You can find more information about SODECAN's first line of funding at Next link.
Innovation Line for SMEs
-Objective: Promote the technological, organizational and business management modernization of Canary Islands SMEs, thus contributing to their competitiveness. Encourage the development and implementation of new processes and products in the Community.
-Type of funding: Participatory loan without fees, of between 25,000 and 1,000,000€, with a maximum intensity of 85% of the eligible costs of the project.
-Main conditions of funding:
-The maximum loan repayment period will be 10 years, including a maximum grace period of 18 months. The established date for the first amortization will be one year from the date scheduled for the completion of the project.
-Quarterly amortization.
-Interest rate: 1-year Euribor +2.75%.
-Late payment interest: 8% per year on the amount of the amounts outstanding to be paid.
-Advances of up to 90% without the need for guarantees.
-Beneficiaries: Self-employed persons, commercial companies and, in general, any entity, regardless of its legal form, that carries out an economic activity on a regular and legal basis (SME)
-Main requirements:
- Have a viable technological, organizational and/or business management innovation project.
- To have an investment purpose in the Canary Islands.
- Do not belong to a sector that is not eligible for the ERDF.
- Have full capacity to receive public money.
-Project typology: The type of eligible projects is divided into three large blocks.
- Of technical innovation in products or services.
- Of technical innovation in processes.
- Of organizational innovation and business management.
-Eligible expenses: Investments and expenses directly related to the project (fixed assets, intangible assets, personnel, materials and consumables, external services...).
-Duration of the project: The project will have a maximum duration of 18 months, and may be extended by 6 more months on an exceptional basis if the beneficiary proves and justifies the delay in execution. -
-Evaluation of the project: Primarily, the projects will be evaluated based on the degree of technical and technological viability, the degree of innovation and their degree of economic and financial viability. You can find more information about SODECAN's line of business innovation for SMEs in the Next link.
Energy savings and efficiency and renewable energy line for SMEs
-Objective: Promote energy savings and efficiency in Canary Islands SMEs, as well as the self-consumption of energy from renewable sources.
-Type of funding: Participatory loan without fees, of between 25,000 and 1,000,000€, with a maximum intensity of 85% of the eligible costs of the project.
-Main conditions of funding:
-The maximum loan repayment period will be 15 years, including a maximum grace period of 18 months. The date set for the first amortization will be six months after the expected completion of the project.
-Quarterly amortization.
-Interest rate: 1-year Euribor +2.75%.
-Late payment interest: 8% per year on the amount of the amounts outstanding to be paid.
- Advances of up to 90% without the need for guarantees.
-Beneficiaries: Canarian companies in possession of the status of SMEs, which can prove that they have not been able to obtain financing under market conditions.
-Main requirements:
- Have a viable project dedicated to improving energy efficiency, or a self-consumption project based on renewable energy.
- To have an investment purpose in the Canary Islands.
- Do not belong to a sector that is not eligible for the ERDF.
- Have full capacity to receive public money.
-Project typology: The type of eligible projects is divided into three large blocks.
-The application of technology in existing buildings and consumer facilities to improve energy savings and efficiency.
-Of installations for self-consumption of any energy from renewable energies.
-Projects that contemplate the combination of activities from the two previous blocks.
-Eligible expenses: Investments and expenses directly related to the project (fixed assets, intangible assets, personnel, materials and consumables, external services...).
-Duration of the project: The project will have a maximum duration of 18 months, and may be extended by 6 more months on an exceptional basis if the beneficiary proves and justifies the delay in execution.
-Evaluation of the project: Both the technical/technological viability and the economic-financial viability of the project will be evaluated.
You can find more information about SODECAN's energy savings and efficiency and renewable energy line for SMEs in the Next link.
From Intelectium we are experts in the application and management of SODECAN lines. We help you assess your startup's eligibility for the call. Once analyzed, we prepare a detailed report through which we can request and manage the help. We operate under a completely success-oriented model, in which we don't charge initial set up fees to start working, but we are at risk and only get paid if we get funding for the company. Get in touch with us hither for expert advice.
