Two new financing instruments for companies will mobilize 676 million and will maintain 68,000 jobs in CyL

 

 

Del Olmo y Álvarez en el acto con las entidades financieras

Del Olmo and Álvarez in the act with the financial entities EUROPA PRESS

According to the Minister of Economy and Finance, Pilar del Olmo, these two new financial instruments are co-financed at 50 percent by the EU under the ERDF Operational Program of Castilla y León 2014-2020, which has put Iberaval into operation as a financial manager .

The first is the Guarantee Fund for Business Growth, has a budget of 61.6 million euros until 2021 and will allow the formalization of loans worth 342 million with an investment of 513.1 million euros and 51,550 associated jobs .

This new fund supports SME operations that want to improve the productivity and competitiveness of their work centers in the Community by introducing new processes and products to increase their marketing capacity. Its repayment term ranges from one to 10 years, with two deficiency included, and covers up to 75 percent of the risk with an amount of up to two million euros.

The other instrument is the Guarantee Fund for R & D Projects and Innovative Companies and is exclusively aimed at companies of this type of any size in order to promote the implementation in the autonomous territory of technology-based businesses or that apply practical way scientific knowledge.

Its repayment period ranges between five and seven years, also with two deficiency periods, and offers coverage of up to 80 percent for investments, business plans and working capital with an overall amount of up to two million euros. As detailed by the counselor, this tool has 19.6 million at its disposal, which will result in the formalization of 108.8 million and mobilize another 163.2 million until 2021 with an impact on human capital equivalent to 16,396 jobs.

These are the main developments that the Minister of Economy and Finance has moved on the occasion of the signing of agreements between Iberaval and a score of financial entities that collaborate with the support programs of the Board to companies in Castilla y León so they can access to loans and guarantees that guarantee the necessary resources for their activity in response to the crisis years in which they could not access the financing of traditional circuits.

For this, the counselor recalled, in 2016 the program for the Promotion of Entrepreneurship Creator of Employment (better known as ADE Employment) was created, which envisages inducing the investment of 66 million euros in this year from the formalization of guarantees by amount of 57.4 million – of which three come from the autonomous regions – that will be reflected in the generation of 1,300 jobs.

According to his calculations, since it began operating in October 2016, 117.8 million euros have been mobilized, which will have stimulated the creation of around 2,500 jobs in Castilla y León at the end of 2018.

Del Olmo recalled in this regard that ADE Employment offers loans of up to 600,000 euros at zero cost for the first 40,000 euros for each new contract, “with a cap of five jobs and for a maximum of four years, in addition to including a coverage of risk of up to 20 percent of the subscribed capital “.

During its validity, which extends until December 31 of this year, the Government of the Community will allocate a total of 5.5 million euros to this product, which was born linked to the Strategy of Entrepreneurship, Innovation and Autonomous 2016-2020 driven by the Ministry of Economy and Finance.

To this has added the historic ADE Financing, endowed by the Board with three million euros in 2018, which is aimed at SMEs, self-employed and entrepreneurs of virtually all sectors. Del Olmo has reported that this year will enable 70.2 million euros in bonus credits for business projects for an amount of 80.7 million, which are associated with the consolidation or generation of 7,650 jobs.

Since its inception in 2000, the Board has provided Castile-Leon companies with 78 million euros through this channel, which has led to an investment of more than 1,455 million euros and the creation or maintenance of more than 110,000 jobs, based on the completion of close 10,200 operations.

This program provides guaranteed loans of between 6,000 and 600,000 euros with a reduced financial cost, which can cover 100 percent of the total investment and has a repayment term of up to 15 years.

Both Del Olmo and the president of Iberaval, José Rolando Álvarez, have noted the impulse of public-private collaboration to finance the companies of Castilla y León before the “extraordinary panorama” for business financing in the Community, in the words of president of the reciprocal guarantee society that sees in Castilla y León the best environment for financing SMEs.

“It is time to invest”, insisted José Rolando Álvarez, who has assured SMEs that have the credit window open to carry out their entrepreneurial projects at a time when the economy is going well and where it is going to create employment. Álvarez has referred specifically to the “virtuous circle” in which the support and advice that businesses need to create quality employment and generate life opportunities in their land.

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