OBJECTIVE

To co-finance the start-up, initial phases or expansion of tech-based business projects, along with accredited investors.

WHO CAN APPLY

• Capital enterprises (SL, SA or Sociedades Comanditarias por Acciones) that have been trading in a market for no more than 7 years since their first sale that meet the definition of SME indicated in Appendix l of Regulation EU Nº 651/2014

Companies in crisis, those operating in the fisheries or aquiculture sectors and primary producers of agricultural products may not apply for this funding.

REQUISITES

• A tech-based business project and a promoter or team of promoters capable of implementing it.

• Accredit the promotion team’s capacity and commitment.

• Provide documentation demonstrating the commitment to invest of one or several accredited investors containing the main characteristics of the investment.

• Guarantee that the purpose of the project is to invest in Canaries and most of the business must be done in Canaries.

• Physical or virtual links with the Canary Island Network of Technology Parks and Spaces (Red de Espacios y Parques Tecnológicos de Canarias). This requisite must only be met when Sodecan tells you at some point during the application process.

FINANCIAL CONDITIONS

• Amount: Participative loans between €50,000 and €500,000. The sum that Sodecan contributes will always be within this range and at the most, it will be the same amount as the accredited investors pay out, without taking into account any investments made prior to applying for a participative loan.

• Term of the loan: Up to 8 years, including the grace period.

• Grace period on paying back the principal: Up to 4 years.

• Interest rate:
– Fixed interest rate: 1-year Euribor + 3.5%
– Variable interest rate: Depends on the financial profitability of the company^(*)

^(*) NB: The variable interest rate will be calculated each year from the annual accounts approved for the previous year by dividing the pre-tax earnings by the average equity. Irrespective of the above calculation, the maximum applicable variable interest rate will not exceed the equivalent of 1-year Euribor plus 15 percentage points.

• Charges:
– Opening charge: 0.5% of the nominal amount of the loan.
– Cancellation charge: 1% of the amount amortised.

• Guarantees / advances:
As a general criterion, no additional guarantees will be required over and above those provided by the business project itself.

Sodecan will make payments at the same time as the accredited investors, although payments made by said investors after the date of the application to Sodecan for a participative loan may be accepted.

Notwithstanding the above, other financial conditions may be established and other additional guarantees required in accordance with the characteristics of the company.

• Political rights:
As a general criterion, Sodecan does not participate in the governance bodies of the Company, but it does reserve the right to do so.

PROCEDURE

The application period closed on 28 July 2016.

Before starting the formal procedure, we recommend you visit our personal advisory service, where we will give you an initial opinion on whether the project is suitable for the line of funding you are applying for and the focus of the documentation to present.

This line of funding is processed directly with Sodecan, as indicated in the following procedure.