ENISA financing lines for startups: complete guide

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If you are an SME incorporated in Spain and you want to undertake an innovative project and are looking for financing, you can possibly benefit from one of the three types of ENISA financing lines, each one oriented to a different profile startup.

From The Startup CFO, we have written this article to explain what ENISA lines are, when you can apply to each of them depending on the stage of your company, what is the best time to do it and also to offer you our help in case you want it.

What are ENISA financing lines?

ENISA is a public entity that provides financial support to small and medium companies or startups that want to promote their business innovation projects.

They are one of the first sources of financing that entrepreneurs turn to to raise funds for their company in the initial stages and to grow their project.

These grants are an ideal option to complement other sources of private financing (in the form of capital increases) since they may even double the amount of own funds of your startup, which allows you to not dilute your percentage of control over it.

With € 1,100 million invested in more than 6,300 companies financed since 2015, ENISA has established itself as the main reference in the granting of participating loans in Spain.

Why is it a good idea to apply for an ENISA loan if you have a startup?

The main advantage of ENISA loans compared to bank financing is that they never require collateral, so the entrepreneur does not undertake personal risks if there is a default. In return, your application requires you to submit a very comprehensive viability plan that will be analyzed and validated by ENISA before being granted.

The other great advantage is that the amortization of this loan lasts up to 9 years with a grace period of up to 7 years, depending on the ENISA line that is requested.

To request these grants, the business model of your startup must have some differentiating element that gives you a competitive advantage over the competition, so it is always important that you value your specific case with a consultant specialized in this type of applications to maximize your chances of success.

In addition, ENISA financing is conditional on your startup obtaining or recently obtaining a capital increase.

What line of financing is most suitable for your startup?

There are three ENISA financing lines that you can request, all of them with a minimum amount of € 25,000. Depending on when your startup is, you can request one or the other.

Here we explain the differences between them.

ENISA Jóvenes Emprendedores (ENISA JE)

The ENISA Jóvenes Emprendedores line is aimed at recently established startups created by young entrepreneurs under 41 years of age and its purpose is to co-finance the company’s business plan.

Designed to accompany startups and SMEs in their initial stage, to be eligible for this participatory loan, your startup must meet three main requirements:

  • Have own funds equivalent to 50% of the financing you want to request.
  • Be registered in the 24 months prior to requesting the application.
  • Have some validation of your product or service in the market, even if it does not monetize or provide income on a recurring basis.
  • The maximum amount of this aid is € 75,000.

ENISA Emprendedores

The ENISA Emprendedores line is aimed at startups in their early stages of life, created by entrepreneurs of any age, and its purpose is to address the investments that your business project needs in its initial phase.

To be eligible for this aid, your startup must meet some slightly more demanding requirements than in the previous case:

  • Have a minimum equity equivalent to the total amount of the loan.
  • Be registered in the 24 months prior to requesting the application.
  • Have some validation of your product or service in the market, normally represented in the form of revenue.
  • The maximum amount of this aid is € 300,000.

ENISA Crecimiento

The ENISA Crecimiento line is aimed at supporting the business projects of companies that are seeking to expand their business, achieve a competitive improvement or finance themselves through corporate operations.

To be eligible for this aid, your startup must mainly meet the following requirements:

  • Have a minimum equity equivalent to the total amount of the loan.
  • Have revenues on a recurring basis.
  • For loans of more than € 300,000, you must have the financial statements of the last financial year closed externally audited.
  • Unlike in the two previous cases, to apply for the ENISA Crecimiento grant, your startup must not meet any minimum or maximum age requirement.
  • The maximum amount of this aid is € 1,500,000.

What is the best time of the year to request an ENISA loan?

Although it can be applied for at any time of the year, it is recommended that you apply during the first semester or, at the latest, in September.

Given that the total financing of these grants is established annually and ENISA begins to receive applications from January, the sooner you present your application, the sooner they will be able to analyze your project and it will be easier for it to enter the investment limits of the current year, maximizing your chances of success.

Why is it recommended that you have a specialized consultant to obtain ENISA assistance?

At The Startup CFO we are partners of Intelectium, a consultancy company specialized in requesting and obtaining public and private funding for startups, something they have been doing since 2004.

Applying for an ENISA grant is a very demanding procedure in which you can lose the aid 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.

In addition, this gives you more security when it comes to seeing which of the three lines is more suitable for your specific case.

If you decide to count on us, the great advantage for you is that we share the risk with you, that is, we only charge you 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 info@tscfo.com.

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