A few weeks ago we wrote this article to tell you about the ENISA lines, a public entity that provides financial support to small and medium-sized companies or startups that want to promote their business innovation projects.
These soft loans are usually one of the first sources of financing for companies in initial stages and help entrepreneurs grow their projects. These lines are especially attractive for the youngest since they have better conditions to finance their projects.
At The Startup CFO we have written this article in order to give you all the details you need to know if you are thinking of applying for an ENISA Jóvenes Emprendedores, which is aimed at recently established startups created by young entrepreneurs under 41 years of age and which amount can vary between € 25,000 and € 75,000.
This loan is designed to help companies and startups in their earlier stages.
Its purpose is to co-finance the company’s strategic plan, complementing its first capital contributions or other rounds of private capital.
As general requirements of any ENISA line, you must meet the following:
- Be a PYME (SME) according to the definition of the European Union.
- Have its own legal personality.
- Have its main activity and registered office within the Spanish national territory.
- Have an innovative business model, novel or with clear competitive advantages.
- Demonstrate the technical and economic viability of your business plan.
- Have the accounts of the last closed fiscal year deposited in the Mercantile Registry or in another appropriate public registry.
Specifically, to apply for the ENISA JE you must meet some particular requirements:
- Most of the capital must be owned directly by people under 41 years of age.
- Be constituted in the 24 months prior to requesting the application.
- Have a minimum capital or equity equivalent to 50% of the financing you want to request.
- Have some validation of your product or service in the market, even if it still does not monetize or provide income on a recurring basis.
The amount that they can grant you is between € 25,000 and € 75,000, under the following conditions:
- Interest rate applied in two tranches: the first tranche with Euribor + 3.25% interest; the second tranche consists of a variable interest depending on the financial profitability of your startup, between 3 and 6% according to the rating of the operation.
- Opening fee of 0.5%.
- Principal maturity and grace periods are up to 5 and 7 years, respectively.
- Commission to be paid in the event of early amortization is equivalent to the amount amortized in advance as if it had accrued the maximum second tranche of interest.
- Commission to be paid for early maturity in the event of a change in the shareholding is equivalent to the amount amortized in advance as if it had accrued the maximum second tranche of interest.
- Monthly interest and principal amortization.
Although it can be requested at any time of the year, it is recommended that you apply during the first semester or, at the latest, in September.
Funding for these loans is established annually and ENISA begins accepting applications from January. So the sooner you present yours, the sooner they can analyze your project and the easier it will be for them to grant it to you.
Yes, as long as your company grows over time and you meet the requirements for ENISA Emprendedores and / or ENISA Crecimiento loans.
If there is a capital increase or the cash flow of your startup grows considerably, you can opt for the other two lines at the moment even if you have been granted the ENISA JE.
At The Startup CFO we are partners of Intelectium, an advisor specialized in requesting and obtaining public and private funding for startups, something they have been doing since 2004.
Applying for an ENISA loan is a very demanding process in which you can fail if the project is not perfectly presented and justified, so we will always recommend that you have a company specialized in obtaining public and private financing by your side. In addition, this gives you more security when it comes to seeing which of the three lines is more suitable for your specific case, and can help you discuss your project with ENISA analysts prior to presenting them.
If you decide to count on us, the great advantage for you is that we only charge if we get the financing for your company.
So if you want to increase your chances of success by requesting this help, we invite you to contact us at email@example.com.