The Vice President, Antoni Costa, today explained to representatives of various economic and business entities this support for the financial costs of financing investments in innovation.
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Earmarks 5 million euros to boost business investment in innovation
The Regional Ministry of Economy, Finance and Innovation has announced aid for business innovation through a subsidy for the financial costs (interest, commissions, etc.) of financing investments in innovation.
This was explained by the Vice President of the Government, Antoni Costa, during the presentation of the new ISBA Innovation Line, which took place today at the headquarters of the ISBA, SGR. The event, which was attended by representatives of various economic and business entities, was also attended by the regional secretary for Innovation and Digital Society, Antoni Carmona; the director general of the Treasury, Financial Policy and Assets, Susana Pérez, and the president of ISBA, Eduardo Soriano.
This support of five million euros specifically for innovation is part of the call for aid to companies in the Balearic Islands to cover opening and study fees, interest and the cost of guarantees from mutual guarantee companies, liquidity financing operations and productive investment and innovation.
Within the framework of this call for aid applications that the Regional Ministry announces each year through the Directorate General of the Treasury, Financial Policy and Assets, grants for innovation operations are those with the best aid conditions compared to other subsidised operations (liquidity operations, productive investments, etc.).
To obtain this aid, companies must be small or medium-sized enterprises that wish to carry out an investment in innovation in production centres located in the Balearic Islands and finance it by means of a financial operation guaranteed by a mutual guarantee company such as ISBA, SGR.
The subsidised object is the financing operation (loan), not the investment itself, given that the purpose of the line of aid is to facilitate access to financing for SMEs in the Balearic Islands. The aid from the Autonomous Community contributes to the fact that SMEs can obtain financing at a lower cost than they would obtain on the market.
Criteria
The innovative nature of the investment will be verified by the Directorate General for Research, Innovation and Digital Transformation, taking into account criteria such as the degree of innovation, scientific-technical quality, market potential and whether it is in line with the Sustainable Development Goals (SDGs).
In addition, during this verification, the company will be eligible for the INNOBAL seal issued by the Directorate-General for Research, Innovation and Digital Transformation (https://www.caib.es/govern/sac/fitxa.do?codi=5714708&coduo=6&lang=es).
The fact that the Directorate General for Research, Innovation and Digital Transformation does not appreciate the innovative nature of the investment project does not imply that the operation cannot be formalised and apply for aid for financial costs in another category of aid provided for in the aforementioned call (e.g. as a productive investment).
The financing operations have to be formalised between 1 December 2023 and 30 November 2025. Aid applications can be submitted until 5 December 2025 (via the partner ISBA, SGR).
The aid may be co-financed by the ERDF Programme 2021-2027 of the Balearic Islands.
Contact with ISBA
To obtain more information about the financing of their investment, companies should contact ISBA, SGR, a collaborating entity for the management of the grants (https://www.isbasgr.es/es/).
ISBA, SGR, advises companies on how to obtain financing for their investment projects. In addition, ISBA, SGR, has agreements with the main financial institutions with advantageous financial conditions for its clients. It should be noted that both ISBA, SGR and the financial institutions will approve the financial operation in accordance with their risk assessment criteria and taking into account the company’s capacity to repay the borrowed capital.
It should be noted that the financing operation to be subsidised can also be in the form of a loan from the Centre for Technological Development and Innovation (CDTI), a public business entity dependent on the Ministry of Science, Innovation and Universities (https://www.cdti.es/aprs-2). In this case, it will also have to be guaranteed by a mutual guarantee company such as ISBA, SGR, to be eligible for aid towards the financial costs of the Autonomous Community.
Once the loan operation and the guarantee have been formalised, the aid for the financial costs of the Autonomous Community can be applied for, also through ISBA, SGR, as the collaborating entity for the management of the aid, which supports the companies with all the administrative procedures.
The aid consists of subsidising part of the financial costs:
Of the loan operation: interest and arrangement fees with the credit institution.
Of the guarantee: cost of the guarantee and study commission with the mutual guarantee company.
The aid is calculated on a maximum financed amount of €1,000,000, the subsidised period is up to the first 5 years of the loan operation and the subsidised interest rate is 3%.
With the help of the CAIB, the entrepreneur can save a significant part of the financial costs of the operation. These savings vary depending on the amount financed, the term of the operation and the interest rate of the contract.