ENISA, What are they and how to apply?

ENISA, What are they and how to apply?

ENISA (National Innovation Company S.A.) stands as a decisive agent in the national business landscape, dedicated to supporting the realization of innovative projects that drive competitiveness in various industrial sectors. In line with this, ENISA deploys a wide range of financial instruments aimed at supporting business initiatives at different stages of development.

In its commitment to driving economic progress, ENISA channels its resources through the provision of participative loans. This approach presents a marked distinction from conventional banking practices by foregoing requirements for guarantees or personal endorsements, prioritizing instead the presentation of solidly grounded business viability plans.

In exchange for this flexibility, the lending entity, represented in this case by ENISA, acquires a share in the profits of the supported company, in addition to receiving interest payments that are partly linked to its economic and financial performance.

Since 2016, there has been a notable extension in repayment terms and grace periods, thus shaping a financial formula that amalgamates characteristics of long-term loans with elements of venture capital.

It is important to highlight that, unlike venture capital, the interest derived from participative loans is tax-deductible, and there is no need to carry out a thorough valuation of the company at each stage of investment or divestment. This characteristic provides greater agility and simplicity in financial processes, thereby consolidating the attractiveness of this financing modality for innovative companies.

Main financing lines offered by ENISA

The financing offered by ENISA or the Startup emerging enterprise certificate, proves to be a particularly suitable option for startups and innovative SMEs, complementing traditional bank financing comprehensively. Frequently, it constitutes one of the first alternatives that entrepreneurs resort to in financing their companies in early stages and promoting the growth of their projects.

ENISA’s participative loans are ideal for accompanying private investment rounds or capital increases carried out by partners, since ENISA tends to match or resemble the amount of equity capital available to the company.

Consequently, it is highly recommended to have ENISA’s financial support to avoid significantly diluting the entrepreneurs’ shareholding and to retain greater control over the company. Below are the main financing lines offered by ENISA.

1. Young Entrepreneurs Line:

This line is aimed at SMEs and startups led by young entrepreneurs under 40 years of age. The available loans range from 25,000 to 75,000 euros, intended to cover investment needs in the initial phase of the business project.

2. Entrepreneurs Line:

Intended for SMEs and startups with no age limit, founded by entrepreneurs with innovative projects and a clear competitive advantage. The loans offered range from 25,000 to 300,000 euros, adapting to the financial needs of each project in its initial phase.

3. Growth Line:

This line is designed to finance business projects with a viable and profitable business model seeking to improve their competitiveness, make changes in their production model, or expand internationally. Loans range from 25,000 to 1,500,000 euros, allowing extensive coverage of SMEs’ financial needs in advanced stages of development.

4. AgroInnpulso Line:

Directed at business projects in the agri-food and rural sector that incorporate technological and innovative elements. The loans offered, between 25,000 and 1,500,000 euros, aim to promote the digital transformation of small and medium-sized companies in this sector.

5. Digital Entrepreneurship Line:

Focused on supporting digital entrepreneurship projects led by women, with the aim of reducing the gender gap in the business field. The available loans, between 25,000 and 1,500,000 euros, are aimed at emerging or growing companies in which women hold leadership or power roles.

Requirements for Obtaining an ENISA Loan

Regardless of the selected financing line, applicants must meet certain general requirements, which include:

• Having incorporated the company within a period not exceeding 24 months prior to the loan application.
• Being an SME according to European Union regulations and having registered office in Spanish territory.
• Developing a business activity with an innovative component or a clear competitive advantage.
• Not belonging to the real estate or financial sector.
• Having a business viability and technical feasibility plan for the business project.
• Deposit the accounts of the last closed financial year in the Commercial Registry.

Granting of the ENISA Loan

The loan granting procedure is divided into three phases, which may extend over a period of three or four months from the initial approval of the application to the effective disbursement of funds to the beneficiary.

In the first phase, the applicant must submit the application, accompanied by all relevant documentation. This documentation includes detailed information about the applicant company, a comprehensive market analysis, investment data, financial statements, financial projections, and any other documents required by the corresponding entity.

Subsequently, ENISA proceeds to thoroughly examine the proposals submitted, determining both the loan amount and its specific conditions. It is important to emphasize that the analysis of the application will not commence until all sections are duly completed and all mandatory documentation has been properly uploaded to the designated portal.

Finally, the loan is formalized through signature before a notary public. From this moment on, beneficiaries have a period of three months to provide the remaining required documentation.

In case this period is exceeded, the application will be considered null and void, obliging the applicant to submit a new application. However, the possibility of recovering the previously submitted application is contemplated to avoid the need to complete a new process from scratch.