08 FEB 2021

New ICO credit lines for the self-employed and entrepreneurs are in force in 2021 and can be applied for throughout the year. 

Who can access these lines of aid?

The loans may be applied for by the self-employed, entrepreneurs and all types of companies, both Spanish and foreign, wishing to carry out business activities and/or investments, cover liquidity needs or expenses within the national territory.

Individuals, homeowners' associations and groups of homeowners' associations may also apply for financing to refurbish homes and buildings or to reform their common elements.

Where can applications be made?

Directly through credit institutions.

What is the maximum amount per customer per year?`

Up to 100% of the amount of the invoice may be financed, provided that the maximum amount of 12.5 million euros of outstanding balance per customer per year is not exceeded, in one or more operations

What items can be financed?

  • Investment projects and/or the general needs of the activity, among others, liquidity needs such as current expenses, payroll, payments to suppliers, purchase of merchandise, etc.
  • Technological needs.
  • Acquisition of new or second-hand fixed assets.
  • Passenger and industrial vehicles
  • Adaptation and refurbishment of facilities.
  • Acquisition of companies.
  • Refurbishment or reform of buildings, common elements and dwellings (including VAT or similar taxes) in the case of communities of owners, groups of communities of owners and individuals.

What are the existing modalities of operation?

Loan, leasing, renting or credit line.

What interest rates are offered?

You can choose between a fixed or variable interest rate. If the operation is formalised at a variable interest rate, this will be reviewed every six months by the Credit Entity in accordance with the terms of the financing contract. 

The APR may not exceed the following limits:

  • For operations with a term equal to 1 year: Fixed or Variable rate plus up to 2.30%.
  • For operations with a term of 2, 3 or 4 years: Fixed or Variable rate plus up to 4.00%.
  • For transactions with a term of 5 years or more: Fixed or Variable rate plus up to 4.30%.

The APR is updated fortnightly. It can be consulted in the product file on the ICO website.

What is the repayment period and grace period?

From 1 to 20 years with the possibility of up to 3 years grace period on the principal, depending on the term.

What fees and expenses are applied?

The credit institution may charge a single fee at the start of the operation, plus, where applicable, an early repayment fee.

What are the guarantees?

They will be determined by the credit institution, except for the guarantee of the SGR/SAECA


Phantom shares: a tool to attract talent in startups

Among the many ways to retain talent in start-ups, phantom shares are a very attractive option for both the company and the employee. This type of share grants employees economic rights that are equivalent to a stake in the company's share capital, i.e. the right to receive payment based on simulated shares in the company.


Sign up for the CINC newsletter

You might be interested in