Participatory loans for Valencian startups and SMEs

Business style

Projects must have a high innovative character.


Participatory loans with Euribor interest rate + 6.5%


Need for outside funding or providing new funds to the company of 50% of the amount of the loan


Maximum amount of up to €1 million.


No personal guarantees


9 years, with a 7 year grace period


The company must make or have recently made a capital injection


Participatory loans


Applied in two sections. The first tranche will be Euribor + 3.25% and the second will be an additional 6% maximum depending on the company's profitability.


They do not require personal guarantees or guarantees, which makes it much more interesting than a traditional bank loan

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The Valencian Institute of Finance (IVF) offers participatory loans to startups and SMEs in the Valencian Community that are less than 5 years old so that they can cover working capital needs, as well as the acquisition of assets for the development of their business activity. The loans will not require more guarantee than that provided by the very project for which they are requested.
What type of funding is it and what projects can benefit?
Projects must be highly innovative for the commercialization of a product or service. The IVF loan line offers loans of between 200,000 and 1M€, at a 12-month Euribor interest rate, plus a differential of up to 6.5%, on which an interest rate discount of up to 3.5 percentage points may be applied. Obtaining funding will be linked to the obtaining by the requesting company of additional funding from outside and/or providing new funds to the company, of at least 50% of the requested funding. It is a financial instrument halfway between traditional lending and venture capital that considerably reinforces the financial structure of companies.
What is the expiry date for transactions?
Transactions can have a maturity period of up to 15 years, depending on the line of financing, its purpose, the characteristics of the business project and its economic-financial forecasts.
What are the main characteristics of IVF loans?
Variable interest is determined based on the economic-financial evolution of the company. The criteria for determining the evolution may be: net profit, turnover, total assets or any other criteria agreed by the company and the IVF. It does not require guarantees or guarantees. In addition, the interest on the loan is tax-deductible.
When are the funds disbursed?
The funds are made available once the loan is signed with a notary, upon request by the company, once the requirements established in the loan approval agreement have been met and after the execution of the investment plan has been accredited.
Can the IVF loan be canceled early?
Yes, both in part and in full, at no cost in the case of ordinary loans and microloans. It does not work in the same way in participatory loans, in which case the corresponding commission will have to be paid for the early amortization of the loan and, in addition, to restore its financial solvency, the company will have to compensate for this early amortization with an increase in its own funds equivalent to the amount amortized.
Can funding be requested simultaneously through different lines of the IVF?
No. Funding can only be requested through the line that is considered most appropriate according to the company profile and its state of development. However, if it has happened that once the request has been received, IVF will redirect it to another line that it deems more appropriate to the project.
What is the deadline for submitting applications?
Applications for IVF loans can be submitted throughout the year since their lines of funding are not subject to any type of call.
Is IVF funding compatible with other loans or public aid?
Yes, IVF loans are compatible with any existing type of loan and with any other source of funding, both public and private. In fact, co-financing projects with other public or private bodies would be positively valued.
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