OBJECTIVE

To fund the acquisition and adaptation of technologies that represent an innovation in Canary Island companies.

WHO CAN APPLY

• The self-employed, trading companies and in general, any entity, irrespective of its legal form, that is in business and meets the definition of SME established in Appendix I 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 business innovation project to invest in a permanent establishment in the Canary Islands.

FINANCIAL CONDITIONS

• Amount: Candidates can apply for loans of up to 85% of the fundable budget of the project, which must be between €35,000 and €174,999.

Sodecan considers the fundable budget to be the investments and expenses directly related to the project:

• New fixed assets and the associated civil works, if any.
• Personnel directly linked to the project employed by it.
• Material and consumables.
• Contracted external services and sub-contracting.

Under certain well-justified circumstances, (see details in the call for applications) second hand capital goods may be financed. Land, buildings, depreciation of plant, recoverable IGIC and VAT, personnel costs for employees not linked to the project, on the other hand, are not fundable.

• Deadline for implementing the project:
– Implementation of the project cannot have started prior to filing the application.
– The project duration will be determined in each case, with a maximum duration of 18 months, extendable for a period not exceeding six months, on justification and acceptance of the grounds on which such an extension is requested.

• Amortisation deadline: Up to 10 amortisations every six months.

• Grace period for amortising the principal: The first amortisation one year after the scheduled project completion.

• Interest rate: 2% per year

• Charges: No charges.

• Guarantees:
Loans are normally granted without guarantees, although guarantees may be required, depending on the characteristics and financial situation of the company.

• Disbursements:
You can ask Sodecan for disbursements with advances of up to 90% without guarantees, based on a calendar of milestones agreed upon in the loan contract, in accordance with the characteristics of the project.

• Other advance scenarios are:

– If the company does not provide guarantees.
The company does not ask for an advance, it implements the project in full with its own resources and Sodecan deposits the loan at the end of the project, once this has been implemented and justified.

The company can ask Sodecan for an advance of up to 35% of the loan on signing the contract and the remaining 65% once the project is implemented and justified.

– If the company provides guarantees.
Providing a 15% guarantee, the company can ask Sodecan for an advance of up to 100% of the loan and this will be paid out in accordance with a calendar of milestones agreed upon in the contract, depending on the characteristics of the project.

Providing 65% guarantee, the company can ask Sodecan for an advance of up to 100% of the loan once the contract is signed.
In any case, irrespective of the possibilities of advances established in the preceding paragraphs, the loan must be paid in full before the day September 30, 2016.
Also, depending on the characteristics of the company and the project, other financial conditions may be established and additional guarantees may be required.

PROCEDURE

The application period closed on 29 April 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.