The Enisa Young Entrepreneurs line of financing is designed to support newly formed startups created by young people (under 41 years of age). Enisa co-finances the company's strategic plan with a minimum of €25,000 and a maximum of €75,000.
This is a participative loan that is not convertible to equity. The main difference between Enisa and a bank loan is that the "financing entity", in this case Enisa, is at risk with the operation and applies a variable interest rate based on the company's profits. In addition, it does not require endorsements or personal guarantees from entrepreneurs, and this is one of the main factors why it is so preferred among entrepreneurs.
Enisa stands for Empresa Nacional de Innovación SA, a government agency that has a permanent line of Enisa Jóvenes Emprendedores loans.
What objectives does “Enisa Young Entrepreneurs” have and what projects does it finance?
Enisa Jóvenes Emprendedores' seeks to provide the necessary financial resources to startups and newly formed SMEs, created by young entrepreneurs (under 41 years old), so that entrepreneurs can undertake the investments required by the projects in their early stages. Enisa seeks to co-invest, or in other words, to accompany the first increases or rounds of private capital raised by the companies to boost their growth.
What type of help is it and what are its primary characteristics?
Enisa's financing is in the form of an equity loan and is very different from traditional bank loans:
Minimum and Maximum amount: For the Enisa Young Entrepreneurs line, you can apply for a loan starting at 25,000 euros and up to 75,000 euros.
Interest rates: The first tranche of the loan is calculated at Euribor + 3.25% and the second tranche of the loan is a variable interest depending on the financial profitability of the company, with a maximum limit established between 3% and 6%, following the rating or qualification assigned to the operation.
Commissions: It has an origination fee of 0.5%
Maturity: The maximum maturity or grace period is up to 7 years.
To be eligible for the Enisa Young Entrepreneurs loan line, applicants must be SMEs as defined by the European Union. The beneficiary companies must have their own legal personality and their company must have been incorporated during the 12 months prior to the application. The main activity of the company and its registered office must be in Spain and the business model must reflect innovation or some novel aspect compared to current solutions existing in the market. The majority of the company's capital must be in the hands of individuals no older than 41 years of age, and the partners must contribute at least 50% of the amount of the loan requested through capital or equity.
Application Deadline for Enisa Young Entrepreneurs
This is a type of financing that is permanently open, but we recommend applying during the first half of the year or, at the latest, in September to maximize the chances of getting the loan.
Can you apply for more than one Enisa loan?
Yes, it is possible to apply for new financing from Enisa whenever there are changes and growth in the company. In this sense, after successfully applying for and obtaining an Enisa Jóvenes Emprendedores loan, you will be eligible for Enisa Emprendedores and/or Enisa Crecimiento.
Enisa Young Entrepreneurs Requirements
The startup must have own funds (at least) equivalent to 50% of the loan amount.
The startup must be constituted no later than 24 months prior to the request.
The startup must have launched the product or service to the market, with certain metrics that validate the project (even if it does not yet monetize, nor have recurring revenue).
Enisa Young Entrepreneurs Features
The line is designed to support newly established startups.
Non-convertible equity participatory loan.
Up to 7 years of depreciation with a gap of up to 5 years.
Applied in two sections. The first tranche will be Euribor + 3.25% and the second section of an additional 6% maximum depending on the profitability of the company.
They do not require endorsements or personal guarantees.