VALENCIA. Good news for the potential beneficiaries of the line of subsidized loans of the Valencian Institute of Finance (IVF) for the self-employed and SMEs in the hotel business, leisure and tourism. The entity that directs Manuel Illueca agreed on Wednesday to extend this Horeca line by 100 million euros, double the initial allocation, bringing the total capacity to grant these loans to 150 million euros.
The expansion of this line responds to the high demand registered since its approval, since at the moment more than a thousand operations have been approved for a combined amount of 69.1 million euros, well above the 50 million euros. euros with which this Horeca line was initially endowed.
To increase its endowment of these credits, which include an IVF aid for beneficiaries in the form of non-reimbursable tranches of up to 30% of the total loan, the IVF will have 100 million from the ReactEU fund in addition to the 50 million of euros that the entity contributes from its own resources.
Even with this expansion, the potential demand is already significantly above the available resources, since the IVF has received close to 4,000 applications for a total amount of 220 million euros.
As detailed this Wednesday in Les Corts the Minister of Finance, of the 69.1 million subsidized financing already approved for the Horeca line, a quarter (16.9 million) are direct aid that the beneficiaries will not have to return when taking part of the non-refundable tranche.
The average amount of credits granted so far exceeds 66,051 euros, which means that the aid per company exceeds 16,210 euros on average.
Up to 140,500 euros of aid per company
The IVF recently increased the maximum amount of Horeca loans from 750,000 euros to one million. Thus, the maximum direct aid to which the beneficiaries could aspire has risen from 60,750 euros to 140,500 euros, more than double the initial amount.
The aid, articulated through non-reimbursable tranches, is calculated in percentage tranches that vary depending on the amount of subsidized financing requested. For the first 30,000 euros of the loan, an aid of 30% is offered. The percentage decreased depending on the volume of the credit. Up to 250,000 euros of loan, the aid is 20%; up to 500,000 euros, the aid is 15%; and from half a million to one million euros, the non-refundable tranche is set at 10%.
The term of these credits ranges from 1 to 5 years and the interest rate is 0% plus a margin of between 0.25% and 1.25%, depending on the credit rating of the applicant.
The Horeca line of credits was a sub-line included within the IVF Covid Liquidity Line19 that now, after the extension of the endowment, will be transformed into a new independent financial instrument.
Within the IVF Covid19 Liquidity Line there are three other sub-lines subsidized through non-reimbursable tranches for investment projects in industry, digitization and adaptation of workspaces with social and environmental sustainability measures.
The non-refundable tranche is 10% in industry and digitization and 15% for renovation of workspaces. The resources for the aid are provided by the Ministry of Innovation, the Ministry of Housing and Bioclimatic Architecture and the Ministry of Agriculture, Climate Emergency and Ecological Transition by virtue of the agreements signed with the IVF.
The 100 million to expand the Horeca line will come from the 1,254 million euros that the Community will receive from the React-EU program, the second pillar of the European recovery fund endowed with 47,500 million euros until 2022 to counteract the consequences of the coronavirus crisis .
Spain has 10.3 billion euros, which means that the amount assigned to the Community is equivalent to 12.5% of the national total.
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