The EIB and Santander have agreed to make 1,000 million euros available to companies to finance their investments
SMEs that need medium and long-term financing to make productive investments or cover liquidity needs can benefit from the special credit lines offered by the Official Credit Institute (ICO) and the European Investment Bank (EIB). ICO lines can be processed in almost all financial institutions in the country. Some of the ones offered by the EIB for SMEs, on the other hand, are managed exclusively by Banco de Santander.
The EIB and Santander have agreed to make 1,000 million euros available to companies to finance their investments. 500 million is contributed directly by Santander, and the other 500 comes from a loan that the Bank has granted to that entity. These loans are intended to promote economic reactivation and job creation within the framework of the EU and especially in Spain.
The main recipients of these lines of credit are SMEs with a maximum of 250 employees and midcaps (companies with up to 3,000 employees). The SMEs that benefit from these loans will be able to finance projects of up to 25 million euros and 50 million in the case of mid-cap companies. The money must be used to cover initiatives in the industrial sector and services.
Santander manages exclusively for Spain three lines of financial aid – or mediation – of the European Investment Bank designed for small and medium-sized companies: BEI Liquidity, BEI Investment and BEI Hotels. It also offers two additional lines of financing: one for agricultural holdings (BEI Agriculture) and another to finance higher studies of students and for rehabilitation and modernization of university campuses (BEI Students and Universities).
The BEI Liquidity line is designed to solve specific liquidity needs of SMEs and midcaps, independently of their balance and turnover volume. The line allows financing any need for liquidity with a maximum amount of 12.5 million euros to be amortized between two and five years without deficiency. The EIB Investment, meanwhile, allows to finance up to 100% of investment projects of up to 12.5 million with amortization periods of two to eight years with one year of voluntary deficiency in operations exceeding three years.
SMEs that operate tourist accommodation (hotels, hostels, motels, pensions, rural houses, campsites, etc.) can take advantage of the EIB Hotels credit line. This line of credit gives priority to the financing of investments that affect the renewal of the offer and the savings and energy efficiency of the equipment. Interested SMEs can request up to 50% of the investment project with a ceiling of 12.5 million euros. These credits can be amortized between two and fifteen years.
In addition to the EIB financing lines, small and medium-sized companies can also benefit from the loans promoted by the ICO, which this year will allocate 2,000 million to this end: 1,000 of its own funds and another 1,000 from a loan granted to it by the ICO. EIB in May. All these resources will facilitate the financing of companies at favorable interest rates, both for their long-term investments and for financing working capital for more than two years.
ICO grants to investment projects of SMEs are channeled through the network of offices of collaborating credit institutions, ie the main banks and savings banks in the country. The only downside is that not all entities offer the four lines that ICO makes available to companies. Only some, such as Santander, are managed by all: ICO Empresas y Emprendedores, ICO Guarantee SGR / SAECA, ICO Exportadores Corto Terzo and ICO Internacional.
The ICO Empresas y Emprendedores line is designed to finance self-employed people and companies wishing to invest in Spain or have liquidity needs up to a maximum amount of 10 million euros. Companies can choose modality, loan or leasing. The repayment terms are variable, between one and three years in liquidity operations loans, and between two and twelve years in investment or leasing loans. Clients can also opt for fixed or variable interest rates that are quite favorable. Another advantage of this line is that it is exempt from commissions.
Those who have an endorsement of a Reciprocal Guarantee Society (SGR) or of the State Corporation of Agricultural Insurance (SAECA) and want to cover their liquidity needs or make productive investments in Spain or abroad can benefit from the ICO line SGR / SAECA guarantee. SMEs that opt for this line can finance up to 1.5 million euros. In liquidity operations, loans can only be requested, which will be amortized from one to three years (with one of deficiency). In investments you can opt for the loan or leasing, being the repayment terms of one to fifteen years, with two deficiency.
The ICO Exportadores Corto Terzo line makes it easier for SMEs to consolidate their exports through the advance of invoices from their activity to obtain immediate liquidity. Up to 10 million euros can be financed in one or several operations. SMEs and companies with mainly Spanish capital, domiciled in Spain or abroad, that wish to make productive investments outside the national territory can benefit from the ICO International line.
This line allows financing investments of up to 10 million euros per customer, which can be used for the acquisition or creation of companies; the acquisition of vehicles or productive fixed assets, and investments in liquidity (working capital expenses with a limit of 50% of the financing obtained for this purpose). As in the previous line, the SME can choose the option of loan or leasing.
Fixed or Variable rates available
The amortization periods vary according to the option chosen. For liquidity loans, from one to three years with one of voluntary deficiency. For investment loans, from five to ten years with one of voluntary deficiency, or from one to twelve years with two of voluntary deficiency. For leasing, from two to twelve years (with one year of voluntary deficiency for operations of two to ten years and two years of voluntary deficiency for twelve-year operations). In most cases you can choose between fixed or variable rates and there are no opening, study or availability commissions.
The companies have time to benefit from an ICO line until next December 15, if before the funds are exhausted due to an excess of demand.