Línea BEI Pymes y Midcaps
Financing of investments and working capital
Made by SMEs and midcaps
- Advantageous conditions on having European funds Generous repayment installments Amount up to 12.5 million
What is the EIB SME and Midcaps Facility?
The Line EIB SMEs and Midcaps is a Line subscribed between EIB and Bankia, that it has as an aim to provide the financing of the made business projects in Spain and in the European Union for this type of companies and self-employed workers.
The European Investment Bank (EIB) is a financial institution of the European Union, created in 1958 for the Tried Rome. Its shareholders are the EU member States. In its capacity as an EU institution, the purpose of the EIB is to finance investment promoting economic integration and the greater social cohesion of member States (www.eib.org).
The EIB financing has favourable conditions with respect to alternative credit sources, which allows to Bankia to pass on to its customers a financial advantage in the financing of their projects.
The contribution of the EIB is framed within the signed collaboration agreement in date 23 May 2017 between EIB and Bankia, in virtue of which a Contract of Financing was subscribed with a value of 500 million euros called “EIB LINE OF FUNDING FOR SMEs And MIDCAPS V” and whose object it is to finance investment projects and working capital in Spain and the promoted European Union by self-employed workers, small and medium-sized enterprises (SMEs) and by companies of middling capitalisation (MIDCAPS).
Advantages of the EIB SME and Midcaps Facility
- Beneficiaries: Self-employed workers, SMEs with fewer than 250 employees and Midcaps with a number of employees between 250 and less than 3,000, regardless of its balance sheet and invoicing, that are based mostly in Spain, although are permitted also the based ones in the European Union.
- Financeable projects: investment projects and working capital needs, which must be materialised in Spain or in European Union countries.
- Amount that may be financed with EIB funds: up to 12.5 million euros per project.
- Sectors excluded by the EIB: they will not be able to take refuge in this Line projects of certain sectors, as military productions, property developments, games of chance, production and marketing of tobacco, live animal' use with experimental ends, projects that harm the environment, purely financial operations, among others.
Terms and Conditions
- Economic and financial terms and conditions of loans: Being an EIB-backed Line, it has preferential economic conditions that you can consult at your branch or through your commercial manager.
- Repayment term:
- Investment projects: between 2 and 12 years, with possibility of a waiting period.
- Working capital financing: 2 to 5 years, with the possibility of grace period.
- Type: finance can be secured via loan operations.
- Holders details: the number of employees is calculated taking into account your direct employees as well as employees of linked companies (whether self-contained, partner or related companies), and relationships between companies via individuals in the case of related companies will also be taken into account.
- Validity of the Facility: until 23/05/2019 or earlier, if funds run out.
Details of the financeable projects
A. Investment projects:
- Tangible: Investment projects in active claims, except for fields, that they suppose new investments and/or extension or improvement of existing facilities. Financing for the acquisition of land for agricultural purposes is entirely excluded.
- Intangibles: expenses R&D&I, costs of development, creation or acquisition of distribution networks in national markets or foreigners within the EU, acquisition or purchase of brands and patents.
You will be able to finance the acquisition of a company in order to guarantee the continuity of its economic activity in certain cases and under certain conditions (inter-generation succession or transfer of company ownership to employees).
All investment projects must be materialised in Spain or in a country within European Union.
B. Working capital projects:
- Needs for liquidity destined to provide a stable working capital base that allows the potential beneficiaries to finance the obligations arising from their commercial cycle, as part of their normal activities.
- Financed categories can include, among others, the necessary funds for the acquisition of raw materials and other manufacturing inputs, inventories and indirect costs, as well as the funds to finance commercial debtors and other non-commercial credits.
It will not be able to finance purely financial operations, restructurings of liabilities, refinanciaciones, purchase of shares in companies (except for indicated suppositions previously), not even for the property development.
You will not be able to finance the costs related to the acquisition of licences, production rights and other rights granted by government bodies. Taxes for companies can only be financed in cases where they cannot be recovered.