Iberaval exceeds its maximum financing volume for SMEs with 638 million in 12,700 operations



José Rolando Álvarez

José Rolando Álvarez IBERAVAL

The president of Iberaval, José Rolando Álvarez, pointed out that the previous cap on the SGR in Castile-Leon dates back to 2009, when it exceeded 629.4 million euros in financing available to the member companies of the entity, and considered that, given the “dynamism” in the operation, “it is likely that this amount will continue to increase in the coming months”.

Álvarez highlighted this achievement during the celebration, this Thursday, of the Board of Directors of Iberaval, which has served to analyze the data referring to the first six months of the year, during which 2,000 transactions worth 116 million euros have been formalized , with an eight percent growth.

This progress has much to do with the strength shown by Iberaval in terms of its membership volume, 25,347 (124 of which are institutional or protective) at the end of June, after the incorporation of 1,356 new associates during the last year.

Álvarez added that “it is time for SMEs to invest again”, although “it is true that they are still finding it difficult to obtain the financing they need”, before which he has defended that “Iberaval is the solution”.

In this sense, it has valued the effective support for hundreds of initiatives that, each year, represents the ADE Financia program in Castilla y León, for which it is expected to mobilize some 78 million euros during 2017, from a budget line of the Junta de Castilla y León of 3.5 million euros, which will interest on hundreds of business proposals.

José Rolando Álvarez recalled that Iberaval works in coordination with the Institute for Business Competitiveness of the Junta de Castilla y León (ADE), in order to support companies, self-employed workers and entrepreneurs.

In fact, all the operations that have the backing of the Institute for Business Competitiveness of Castilla y León, through ADE Financia, present an interest rate between 0 and 1.5 percent, depending on the characteristics and feasibility of the project.

In addition this year, the Junta de Castilla y León has increased by 0.25 points the discount applied in four of the ten existing ADE Financing lines. Likewise, in the last few months, two new lines have been launched with an interest rate of zero percent, to promote employment and to support innovative projects.

The first is the Entrepreneurship Development Program, which is also processed by Iberaval and which is aimed at loans of up to 600,000 euros for investment or working capital, to finance up to one hundred percent of the project under advantageous conditions, based on maximum repayment terms of 15 years -with two of lack-, significant cost reductions (interest rate tending to zero) and a specific line of risk coverage.

Thus, the bonus operations in this Program provide for a maximum limit on bonuses of 200,000 euros and five contracts per company, for a period of up to four years.

To this must be added a risk coverage of up to 20 percent of the amount subscribed, which helps to reduce the difficulties of access to markets for SMEs, entrepreneurs and freelancers due to lack of guarantees.

The Institute for Business Competitiveness has also provided a new line to finance business investment projects and working capital needs of self-employed and companies with innovative component, and whose cost is zero for 36 months and the first 150,000 euros.

To obtain it, one of the following conditions must be fulfilled: to have a nature of the company related to innovation, to present an investment of more than 50 percent of its annual sales of its last five years in a new project or to access other markets, count as a shareholder with a venture capital company or have received the same financing in the last 24 months, develop a technological right or have been awarded an R & D + i award.

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