The Instituto de Crédito Oficial (ICO) has recently launched new financing lines for small and medium-sized enterprises (SMEs), as well as self-employed individuals, under the name MRR (Recovery and Resilience Mechanism). These ICO lines for SMEs, sourced from European funds, are designed to support investment projects focused on digital transformation and the transition to a more sustainable economy, with the aim of fostering growth and improving business competitiveness.
The financing conditions for these lines are highly favorable, allowing up to 100% project coverage, with extended repayment terms.
Among the main financing lines offered by the ICO are:
- Green Line: With a budget of 22 billion euros, aimed at financing sustainability-oriented projects.
- Line for Businesses and Entrepreneurs: With an allocation of 8.15 billion euros, focused on supporting business growth.
Benefits of These New ICO Lines for SMEs
This new financing offer managed by the ICO provides significant advantages compared to traditional lines, especially in terms of financial costs. Although subject to European regulations, these lines focus on investment project financing, not working capital. However, the line directed at businesses and entrepreneurs will exceptionally allow coverage of up to 50% of the project value for working capital, as long as these expenses are directly related to the project. Taxes such as VAT cannot be financed.
The repayment terms are broad, ranging from one to twenty years, with flexible grace period options that allow businesses to adjust timelines according to their needs, including the possibility of deferring interest payments for up to three years.
It is possible to access these credit lines even if the project started before their launch, provided it was initially financed with own funds. Retroactivity will apply from January 1 of the year prior to the loan formalization.
This is a great opportunity to contact Altria Corpo and explore which projects can be financed through these ICO lines for SMEs or other similar solutions available in the market.