Ways of public financing in Spain

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Any company can currently count on financial aid for its launch and development, distinguishing between public and private funding. That said, in this blog post we want to focus on talking about the public funding, detailing the main public funding sources existing in Spain.

What is public financing?

The public funding can be defined as a external financing route where the funds obtained come from a body or public institutionthat is, of the state. Within public financing, the most usual forms in which this type of financing is provided are grants, which are grants that do not have to be repaid. The rest of the sources of public financing do require the return of the capital granted.

The loans and credits granted by public entities present a series of advantages for SMEs, among which we can highlight:

  • Loan grace periods: Public loans usually have a grace period of 1 to 3 years from maturity.
  • Non-refundable tranche of the loan (TNR): This concept refers to total amounts of a loan that do not have to be repaid, as aid to borrowing companies. The TNR percentage usually ranges from 5% to 33% of the total amount.
  • They do not appear in the Risk Information Center (CIR or CIRBE): Because the grantors of the loans or credits are public bodies, they do not appear in the CIR.
  • Possibility of obtaining a reasoned report or the innovative SME seal: Depending on the project that motivates obtaining the credit or loan, certificates of the activity carried out can be obtained. These certificates allow SMEs to undertake tax deductions that can reach up to 42% of the amount of said project.

Sources of public financing in Spain

between the lines of public financing for SMEs The most notable existing ones in Spain are:


Neotec is a public funding source Promoted by the Center for Industrial Technological Development (CDTI). As can be deduced from the name of the organization, the Neotec initiative seeks to support and encourage the creation of new technology-based companies in Spain. Technology-based companies are considered to be those that require the intensive use of new technologies for the development of their activity.

As Conditions to be able to access this aid are the following:

  • The company is less than 3 years old at the time the application period closes.
  • Total income from the main business activity (business volume) less than €10 million.
  • The business must create its own R+D+i lines.


Enisa is established as a source of public financing for SMEs through the figure of the loan. In addition, lend advisory services, providing objective information. This public entity offers three lines of financing depending on the maturity of the business, and that vary between €25,000 and €1,500,000. Two requirements are required by Enisa in order to apply for a loan:

  • SME domiciled in Spain.
  • That the SME presents a project that can be considered innovative.

horizon 2020

This is a European Union program which aims to improve the competitiveness of the European continent at a global level. This aid presents as a distinctive characteristic that any type of organization, whether public or private, you can request to obtain. The latter provided that the company resides in one of the EU member states.

SME Horizon

Horizon PYME is managed by the General Sub-directorate for Public-Private Collaboration of the Secretary of State for Research, Development and Innovation, which is located within the Ministry of Economy and Competitiveness.

The goal of Horizonte PYME is finance a feasibility study of an innovative project. The companies that are conformed as potential beneficiaries of this aid are those who were not previously able to access the subsidy offered by the Horizon 2020 program.

ICO credits for startups

These credits are intended for SMEs and freelancers. He Official Credit Institute (ICO) is a public financial entity linked to the Ministry of Economy and Competitiveness. Specifically, the ICO offers mediation lines of credit, in which the credit institutions will assume the risk of the operation, while the ICO is dedicated to analyzing the projects in question and the characteristics that the credit will have.

Call Employ

The Emplea call is another of the programs developed by the Ministry of Economy and Competitiveness. This, however, is intended finance a part of the costs related to the recruitment of personnel for technological development. This objective is achieved by facilitating the hiring of University Graduates or Higher Degrees linked to R+D+i activities.


Any company, throughout its existence, will require different investments for its growth and development. Luckily for you, as an entrepreneur or owner of an SME, you have different types of aid from public bodies. For this reason, in this blog article we wanted to show and publicize the main existing public financing channels in Spain.

Furthermore, if you are interested in this type of external financing, at Alter Finance we offer you our support services for access to public financing. Contact us when you need it.

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