ICO Mejora Competitividad 2010

Beneficiaries:

Companies engaged in Textiles, footwear, furniture, toys, tanning, leather and wooden goods, with specific CNAE’s.

Investments eligible:

Projects aimed at improving the competitiveness of the company and use of innovation in manufacturing processes designed for the diversification or specialisation of the company in market segments less affected by worldwide competition, together with corporate concentration processes entailing new investments.

The investment may not have started prior to 1 January 2010 and must be fully materialised within a maximum of 24 months as from the date the contract is signed.

Investments not eligible. Investments prior to 1 January 2010, investments in business establishments for wholesale or retail distribution and Value Added Tax (VAT).

Repayment period: 

• 5 years without a grace period or including 1 year’s grace period for payment of the principal
• 7 years without a grace period or including 2 years’ grace period for payment of the principal
• 10 years without a grace period or including 3 years’ grace period for payment of the principal

Interest rate: 

Fixed or variable, ICO rate quoted fortnightly by the ICO

• For operations without Reciprocal Guarantee Corporation ICO rate + 1.10%
• Operations with Reciprocal Guarantee Company guarantee ICO rate + 0.85%

Maximum amount:

Up to 100% of the project will be financed:
The part relating to expenses associated with the investment may not exceed 40% of the total investment project.
The accumulated limit for the entirety of the “PROGRAM 2009-2011”, shall be 2,500,000 euros, either in one or more loan or leasing operations and long term over one or more years.

Fees:

No fees.

Early repayment:

If the client wishes to cancel the contract in advance (in full or in part) he must apply with 15 business days’ notice. Depending on the type of interest rate, the following penalties will be applied:

• Fixed rate operations: Penalty of up to 1.00% flat (depending on the case) of the amount repaid in advance. This early cancellation must coincide with the due date of an interest settlement payment if during a grace period.
• Variable rate operations: There is no penalty but it must coincide with the interest rate review date.

In the Leasing type, early cancellation can only be performed for the full amount of the contract.

Within a period of 30 business days the client must return the amounts received in respect of discount on the interest rate.

Compatibility and incompatibility of the aid:

Facility subject to the de Minimis regulations (EC 1998/2006 15 Dec).
This Facility will be in effect until 20 December 2010 or before if the funds are exhausted.