Incentives applicable to industrial firms with productive activity
March 2016.- The Ministry of Industry, Energy and Tourism has launched a new line of loans aimed at fostering new industrial projects, increasing productive capacity of existing businesses and generating improvements in existing production lines. This programme has a budget of €546,809,785.
This line is geared solely to industrial firms with production activity and only projects with a budget of over €75,000 will be accepted. Financing can be used for civil works, building and productive fixed assets, in the case of new establishments; and for civil engineering, building, productive fixed assets and engineering for production processes, in all other cases.
The sum of the items of civil works and building can not exceed the budget of machinery and equipment directly linked to production, except in relocation projects. In this case, the amount of the civil works and building items can come to 70% percent of the total eligible budget. Spending in engineering for production processes may not exceed 30% of the budget for the purchase of machinery and production equipment.
Loans of up to 75% of the budget of the investment project
The loan amount can reach 75% of the accepted budget of the investment project . There are, however, some limits. For companies incorporated between 2015 and 2016, the amount will be up to three times the equity of the company. In all other cases, the limit will be five times the equity of the company
Interest rates will depend on the company rating and the provided guarantees
Interest rates will go from 1.705% to 4.09 % and will be set depending on the credit rating received by the company and the guarantees it provides, which in any case will range from 10% to 100% of the loan amount.
Long term repayment including grace period.
The funded projects must be put into practice starting from January 1, 2016 up to 18 months after the granting of the loan. The loan repayment period will be 10 years, with three years’ grace.