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?

It is a Line subscribed between EIB and Bankia, that it has as an aim to provide the financing for business projects in Spain and the European Union for this type of companies and self-employed workers.

The EIB is a financial institution of the European Union, set up in 1958 by the Treaty of 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 financing from the EIB has favourable conditions with respect to alternative sources of credit, which allows Bankia to transfer to its customers a financial advantage in the financing of its projects.

The EIB contribution is under a cooperation agreement signed on 14 January 2016 between the EIB and Bankia, by virtue of which a Financing Contract for 500 million euros was signed. Designated the “EIB LINE OF FUNDING FOR SMEs AND MIDCAPS III”, its object is to finance investment projects and working capital in Spain and the European Union promoted by the self-employed, small and medium-sized enterprises (SMEs) and companies of middling capitalisation (MIDCAPS).

Advantages of the EIB SME and Midcaps Facility

  • Beneficiaries: The self-employed, SMEs with fewer than 250 employees and midcaps with between 250 and 3,000 employees, regardless of their balance and turnover, that are mainly based in Spain, although those based in the European Union are also eligible.
  • Financeable projects: investment projects and working capital needs, which must be materialised in Spain or in European Union countries.
  • The amount financeable with EIB funds: up to 12.5 million euros per project.
  • Sectors excluded by the EIB: this facility is not open to projects in certain sectors, including military productions, property development, gambling, the production and marketing of tobacco, the use of live animals for experimental purposes, 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.
  • Details of the titleholders: 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.

Details of the financeable projects

A. Investment projects:

  • Tangible: Investment projects in productive assets, except land (except if the purchase is considered technically essential for the project), that involve new investment and/or the extension or upgrading of existing facilities. Financing for the acquisition of land for agricultural purposes is entirely excluded.
  • Intangible: R&D&I expenses, development costs, creation or acquisition of distribution networks in domestic or foreign markets 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. Projects of working capital:

  • Needs of liquidity aimed at providing a stable working capital base that allows the potential beneficiaries to finance the obligations deriving 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 possible to finance purely financial operations (restructuring of liabilities, refinancing, the purchase of shares in companies (except in the previously indicated suppositions) or 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.