Loan possibilities for SME’s in Andalucia

The Junta de Andalucia has allocated €150 million to an urgent programme of financial aid to small and medium industrial enterprises in the region, the decision being taken in order to alleviate the severe effects of the economic crisis on this sector.

The financial aid, which comes a mere six years after the start of the financial crisis, will be in the form of long-term loans at below market interest rates.

Also included in the programme are grants up to a total of €5 million for owners of greenhouses in Almeria which were damaged by hailstorms in November.

Small and medium-sized businesses (SMEs), an important sector in the region, have been falling by the wayside during the crisis, with loans being very difficult to come by. Only 40% of SME’s in Spain manage to arrange any sort of financing, even for expansion.

Requirements for eligibility for the financial aid include, amongst other things, being a legally constituted corporation or co-operative, a minimum of four years continuous trading and having a minimum of fifty employees.

The loans will be linked to business plans and the maximum amount of the loans will be €200,000. In addition, the loan cannot exceed 25% of the equity of the SME.

The programme is being financed with European funds.

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