As the holidays draw to a close, Sabadell Companies Hub‘s schedule of activities is back, with experts debating a range of subjects related to business growth.
On 10 September, we held the meeting ‘Are you an SME and have a project to finance? Discover the new ICO – RRF lines of finance’ to raise awareness of these grants, which aim to finance investment projects that promote green and digital transition, as well as the growth and competitiveness of companies. The new financing lines are part of the Next Generation EU Funds issued by the European Union to revive the European post-pandemic economy and boost the digitalisation and sustainability of businesses.
Carmen Urraca, Director of Official Agreements and Sustainable Finance at Banco Sabadell, and Ana María Martínez, Director of the Mediation and ICO-RRF Department, attended this webinar.
During the meeting, Carmen Urraca and Ana María Martínez discussed the different aspects of this type of financing. When asked by Urraca, the director of the Mediation and ICO-RRF Department spoke about the advantages of this type of financing compared to the usual ICO lines. According to the expert, the RRF initiative clearly offers a competitive advantage in terms of financing costs, compared to the costs of the traditional ICO lines that many companies are already familiar with.
“The European funds will provide an advantage for financing projects that take advantage of the ICO RRF lines”
The director of Mediation and ICO-RRF insisted that investment projects can be financed through the ICO Companies and Entrepreneurs lines as long as the expenses do not represent more than 50% of the project’s total. The expert explained that very broad terms have been negotiated to accommodate all projects, ranging from 1 to 20 years, so that it will be possible to finance investment projects. The same applies to the grace period, meaning that for the first 3 years only interest would be paid.
“Companies should be aware of these lines and all their advantages. It is the perfect time to take on sustainable projects”
Carmen Urraca concluded the meeting by highlighting 5 key points of these new financial aids:
- One advantage of these lines compared to other options is the cost.
- Investment projects can be financed at 100%. Moreover, in the case of the Company and Entrepreneur lines, up to 50% of the expenses associated with the execution of the project can be financed.
- Up to 20 years, with 3-year maturities.
- It can be retroactive.
- All sectors are eligible, any company can apply by mentioning the Green ICO lines.
- It is compatible with other State Aid and is subject to minimums of up to €300,000 and is also compatible with mutual guarantee companies.
You can watch the full meeting here.
