Public loans from ENISA, CDTI and the ICO

Terms used

• ENISA — ENISA is a state-backed lender attached to the Ministry of Industry and Tourism that makes participative loans to Spanish small companies.
• CDTI — CDTI is the public agency that funds company research, development and innovation projects in Spain.
• ICO — ICO is Spain's state-owned bank, whose loan lines are offered to businesses through commercial banks.
• Neotec — Neotec is a CDTI grant for technology-based companies under 36 months old.

Key rules

• ENISA own funds: You must be able to raise your own funds at least equal to the ENISA loan.
• ENISA guarantees: ENISA loans need no collateral or personal guarantees, but the interest partly depends on your profitability.
• CDTI: CDTI mostly funds R&D as loans with a non-repayable portion, and Neotec is a grant for technology companies under 36 months old.
• ICO: You cannot usually borrow from ICO directly; you apply through a commercial bank, which sets the final price.

Which one fits you

Three public bodies offer financing in Spain. They suit different companies, so start with the one that matches your stage.

• ENISA lends to young and growing small companies.
• CDTI funds research and development (R&D) and technology projects.
• ICO money reaches you through your own bank, not directly.

All three need a company with its registered office in Spain. Call conditions change every year, so treat the details below as the general picture and confirm the current numbers with each body.

ENISA: participative loans for small companies

ENISA lends to small and medium-sized companies (SMEs, as defined by EU rules) with a registered office in Spain. It has three main lines:

• Emprendedores is for companies under 24 months old with an innovative or growth-oriented business model.
• Jóvenes Emprendedores is for companies where the founders or shareholders are 40 or under and hold the majority of the capital. The limit used to be 35, and the exact age is set in each call.
• Crecimiento is for established SMEs with at least two years of accounts.

Financial and real estate activities are excluded. You also need a viable project and the ability to raise your own funds at least equal to the loan.

On terms, an ENISA loan is "participative". The interest has a fixed part and a variable part tied to your profitability. You do not need collateral or personal guarantees. The loan ranks behind bank debt. Amounts run from tens of thousands of euros to a few million, depending on the line. Terms last several years, with a grace period before you repay the principal, and a fee may apply. Ask ENISA for the current range, grace period and fee before you plan around a number.

CDTI: funding for R&D and technology

CDTI backs companies with legal personality that can carry out the R&D work and show financial solvency. The instruments open to newer companies are:

• Neotec is a grant for technology-based companies under 36 months old that present a new technology-based business proposal. It covers a share of the budget up to a set cap.
• Proyectos de I+D funds an individual company's R&D project.
• CIEN funds large strategic R&D consortia, so it suits larger firms working together.
• Innvierte is public venture capital co-investment.
• International programmes such as Eurostars and Horizon Europe are also supported.

Most CDTI funding comes as a loan with a non-repayable portion. You repay over several years after a grace period, usually with interest linked to the Euribor rate. The funding is a percentage of the eligible budget. The percentage depends on your company size and project type, and each call sets a minimum budget. Ask CDTI for the current percentage, term and non-repayable share for your project.

ICO: go through your bank

ICO is a state-owned bank that does not lend directly to most businesses. You apply to a commercial bank. The bank assesses the risk and approves the loan under an ICO line, such as ICO Empresas y Emprendedores.

Self-employed people and companies of any size with activity in Spain can use these lines. The line sets the amounts, the term (several years, with possible grace) and the rate limits. Your bank sets the final price within those limits. Some lines carry State guarantees. Ask your bank which lines are active now.

Choosing

• Under 24 months old with an innovative plan: look at ENISA Emprendedores.
• Under 36 months old and technology-based: look at CDTI Neotec.
• Two or more years of accounts and growing: look at ENISA Crecimiento.
• Need ordinary bank financing at a better price, or you are self-employed: ask your bank about ICO lines.

The timeline, checklist and questions below cover the order of steps and what to ask.

Timeline and deadlines

• Apply for an ENISA Emprendedores loan while your company is young: while the company is under 24 months old

• Apply for a CDTI Neotec grant for a technology-based business: while the company is under 36 months old

• Apply for an ENISA Crecimiento loan once you have enough history: after at least two years of accounts

Checklist

• Work out how much own funds you can raise, because ENISA expects you to at least match the loan.

• Check that you can accept interest with a fixed part and a part tied to your profitability.

• Ask CDTI for the repayment term, grace period and non-repayable portion.

• Ask your commercial bank which ICO lines are active and what final price it would charge.

Check the current amounts, rates and fees with ENISA, CDTI or your bank, as these change with each call.

Frequently asked questions

Can my company get an ENISA loan if it is more than two years old?

Yes, ENISA's Crecimiento line is for established SMEs with at least two years of accounts. The Emprendedores line is only for companies under 24 months old. Financial and real estate businesses are excluded from every line.

Can a founder over 35 use the Jóvenes Emprendedores line?

Yes, the limit is currently 40 or under, where it used to be 35, but only if founders or shareholders of that age hold a majority of the capital. Each call can revise the age limit, so check the current one before you apply.

Does a company under 36 months old have a CDTI option?

Yes, CDTI's Neotec grant is for technology-based companies under 36 months old that present a proposal for a new technology-based business. It covers a share of the budget up to a set cap, so it does not have to be repaid like a loan.

Can I apply to the ICO directly for a loan?

No, the ICO does not lend directly to most businesses, so you apply to a commercial bank. The bank assesses the risk, approves the loan under an ICO line and sets the final price within ICO limits. Ask which lines are active.