How to finance with the new Productive Industrial Investment Support Fund (FAIIP)?

One of the novelties for 2021 is the creation of the Productive Industrial Investment Support Fund (FAIIP), with an endowment of 600 million euros, aimed at providing returnable financial support to promote industrial investments. The management of the FAIIP has been entrusted to SEPI Desarrollo Empresarial, S.A., S.M.E. (SEPIDES).

Therefore, all Spanish companies that develop or will develop a productive industrial activity and industrial services, regardless of their size, may be beneficiaries of this fund. The projects must be located in the national territory, being eligible for funding, for applications submitted in 2021, both items that have been executed since 1 July 2020, as well as those that are executed up to 2 years after the date of formalisation of the financing of the FAIPP Fund. For new projects, not yet started, the start of their implementation must be foreseen within a maximum period of 12 months.

There are three financing formulas: ordinary loans, participating loans, temporary and minority equity participation, or mixed formulas between the above, with long-term operations (up to 10 years) and high grace periods (up to 3 years in ordinary and participating loans).

Interest rates will depend on the rating of the company and type of project, the type of financial operation, and the bonus that may be established for compliance with industrial impact criteria, within the following ranges: between 1 and 4.5% for ordinary loans; between 4 and 7.5% in equity loans; and between 4.5 and 8% in equity participation.

The eligible amount of each operation is up to 75% of the project’s bankable budget, with operations ranging from 200,000 euros to 60 million euros per year.

Altria Corpo has direct contact with SEPIDES and can help industrial companies in advising and processing the best financing solution, both under this new FAIIP, as well as in the multiple alternatives that exist from alternative financing.

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