After a long wait, the draft Law on support for Entrepreneurs was published on the 24th of May. This draft law, among its many measures, highlights its aim to make funding easier for entrepreneurs.
It is only a draft Law but different information from the government notes a possible addition of public funding in shares of entrepreneurial companies that want to invest abroad.
At a time when bank credit is so hard to access, it is expected that 3 public investment funds that currently add up to 1,200 million euros, will be invested into shares of companies that want to expand internationally. These three funds are:
- FIEM: Fund for business internationalization.
- FIEX: Fund for overseas investment
- FONPYME: Fund for investment operations overseas for SMEs
With shareholdings for these three funds, obtaining bank credits will be made easier due to the support of public entities which show the reliability that the banks need.
Below the main characteristics of these funds are described.
Currently, the main line of action consists of financing investment operations overseas for Spanish companies. This includes corporative investment (balance risk) as well as project finance (project risk). In the future, there are considerations for this fund to also provide investment funding resources and guarantee funds that aim to finance overseas projects.
The objectives of this fund can be classified into two main points:
- To provide commercial and financial comprehensive support for the internationalisation of Spanish companies.
- To gain maximum efficiency from the available resources.
This fund, which currently operates with €750 million of capital, allows for overseas investment of up to a maximum of €25 million through temporary investments in funds for companies.
The most relevant aspects for financial support offered by this fund are the following:
- Financial projects are classed as viable private projects overseas where there is a Spanish interest rate.
- It is possible to take part through contributions to companies’ capital or through co-investment loans.
This fund has the same characteristics as FIEX but is aimed at small and medium enterprises. It operates with €50 million of capital and the maximum investment is €5 million.
The main aspects to be highlighted from this fund:
- This fund may finance SME projects overseas where there is a Spanish interest rate.
- It is possible to take part through contributions of capital or co-investment loans.
At LeQuid we wish to support young entrepreneurs and companies, and therefore we think that these investment funds and our legal advice add up to a business strategy that can guarantee the viable international expansion of your company.
Suscríbete a LeQuid de la Cuestión
La publicación de LeQuid sobre el mundo del Derecho en los negocios.