ICO to Finance Innovative SMEs

The Official Credit Institute (ICO) has launched a new credit line to boost financing for innovative SMEs. The line, called ICO Innovación Fondo Tecnológico, is endowed with 323.6 million euros, and is expected to reach around 12,000 companies during its nearly two years of validity, until December 31, 2015. The ICO Innovación Fondo Tecnológico line is co-financed by the Operational Program Fondo Tecnológico of the European Regional Development Fund (ERDF), which will contribute around 75% of the capital. The ICO, for its part, will assume part of the risk of financing operations and will additionally offer a preferential interest rate compared to other financing lines to beneficiary companies. The new credit line, which will finance productive investments of innovative companies located within Spanish territory, will be marketed through collaborating financial institutions. The maximum term of the loans will be 7 years, according to El Economista. To qualify for this instrument, companies must be assessed as innovative by the Ministry of Economy and appear on its list of innovative companies. Companies whose activity falls within the economic activities (CNAE) classified as medium or high technology by the National Statistics Institute may also receive loans. ICO Innovación Fondo Tecnológico is not the only financing route that innovative SMEs can resort to. The European Investment Bank (EIB) has also arranged a credit line of 150 million euros to inject working capital into these companies. Both lines will be launched in parallel, totaling 475 million euros.