Línea FEI - Iniciativa Pymes
Provides the business project financing and working capital
Carried out in Spain by SMEs and self-employed workers
- Financing of investment projects from 2 to 12 years. Financing of working capital from 2 to 5 years. Financing by means of a loan, leasing or a credit account.
What are EIF Lines?
The EFI Line of Guarantees SME Initiative, signed between the European Investment Fund (EFI) and Bankia on 1 October 2015, has been created in order to facilitate the financing for business and capital projects carried out in Spain by SMEs and self-employed workers.
The financing awarded to SMEs through the SME Initiative, comes from the support of the European Union with the SME Initiative, with European Union funds via the FEDER and Horizon 2020 funds and those from the European Investment Fund and the European Investment Bank.
The EFI financing with guarantee features more favourable economic conditions with respect to alternative sources of credit, which allows Bankia to transfer to its customers a financial benefits in the financing of their projects.
The European Investment Fund (EIF) was created in 1994 with the mission of helping small and medium-sized enterprises. Its majority shareholder is the European Investment Bank, together with which it forms the "EIB Group".
The EIF provides venture capital to small and medium-sized enterprises (SME), particularly new businesses and those relating to the technology sector. It also provides guarantees to financial institutions to cover their loans to SMEs. For its work, the EIF uses its own funds or those provided by the EIB of the European Union.
The European Investment Fund works in the European Union member states, Croatia, Turkey, and the three EFTA countries (Iceland, Liechtenstein, Norway) (www.eif.org).
The European Investment Bank (EIB) is a financial institution of the European Union, created 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).
Advantages of the EIF Lines - Initiative for SMEs
- Beneficiaries: SMEs and the self-employed according to the definition of the European Commission Recommendation 2003/361/EC, i.e. autonomous SMEs with fewer than 250 employees and turnover of 50 million euros or a financial statement of 43 million euros or less. Beneficiaries must be incorporated and operating in Spain.
- Financeable projects: investment projects and working capital needs that must be materialised in Spain.
- Maximum amount of financing: 12.5 million euros for SMEs.
- Sectors excluded by the EIF: This Line will not be available for projects in certain sectors, such as military production, property development, gambling, production and commercialisation of tobacco, use of live animals for experimentation, projects that damage the environment, purely financial operations (buying companies and financial restructuring), illegal economic activities, nuclear energy, etc. As well as the sectors not included in the de minimis regulation: Agriculture, stockbreeding, forestry and fishing.
- Validity of the Facility: until 30/09/2017 or earlier, if funds run out.
Terms and Conditions
- Economic and financial terms and conditions of loans: Being a line with EIF guarantees, 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: the financing can be formalised through a loan, leasing or credit account.
- 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.
- Details of projects eligible for financing:
- Investments in tangible or intangible assets (limited for the case of land).
- Working capital: raw materials, staff, general expenses.
All investment projects must be carried out in Spain.
The objective of the SME operation should be the constitution of new companies, capital for the initial phase, capital for expansion, capital to support and/or stabilise the general activities of a company or to undertake new projects, or the penetration of existing companies into new markets or new activities. All of this in compliance with the specific ERDF Regulations.
Among other restrictions, the refinancing or restructuring of existing loans or financing of VAT payments are not permitted .