OBJECTIVE

To fund the start-up or initial phases of tech-based companies.

WHO CAN APPLY

• Capital enterprise (SL, SA o Sociedades Comanditarias por Acciones) that has recently been set up and fits the definition of SME provided in Appendix 1 of EU Regulation Nº 651/2014. Applications can be filed as an individual person (entrepreneur) and when SODECAN informs you that the loan has been granted, you will have a maximum of 2 months to set up the company.

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 commitment of at least the main promoter of the business project to devote 100% of this time exclusively to developing it for at least the first year.

• Guarantee that the purpose of the project is to invest in the Canary Islands and most of the business must be done in this region of Spain.

• The Company must be linked physically or electronically to the “Red de Espacios y Parques Tecnológicos de Canarias” (Canary Island Network of Technology Parks and Spaces). This requisite only has to be met when Sodecan tells you during the application process.

FINANCIAL CONDITIONS

• Amount: Participative loans between €10,000 and €100,000.

• Term of the loan: Up to 10 years, including the grace period.

• Grace period for paying back the principal: Up to 5 years. (No interest will accrue during the first 2 years of the grace period)

• Interest:
– Fixed interest rate: 1-year Euribor.
– Variable interest rate: Depending on the financial profitability of the company^(*)

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

• Charges:
– No study or opening charges.
– Cancellation charge: 1% of the sum amortised

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

Sodecan advances up to 100% of the participative loan, making payments in accordance with a calendar of milestones agreed upon in the Investment Agreement

Notwithstanding the above, other financial conditions may be established and other, additional guarantees may be required, depending on the characteristics of the company and the project.

• 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 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 next procedure.