Loans and non-repayable loans
December 11, 2018
This type of loans and loans are usually aimed at female entrepreneurship, youth or new start-ups. In some cases there are also loans that are disbursed to already existing and consolidated companies as long as they invest in certain sectors considered strategic.
What are non-repayable loans?
Non-repayable loans assume a capital contribution: for this reason, those who make use of the non-repayable grant must not give back the capital provided or the interest totalized thereon. The contributions are aid considered as an investment that public bodies make to help the creation of entrepreneurial activities (also by particular subjects – eg unemployed, youth and female entrepreneurship ), the development and consolidation of companies already established and well initiated. Non-repayable loans may be combined with other subsidies such as loans at a relatively low interest rate, special interest rate incentives, interest-free loans, repayment of bank or leasing interests. In practice it can be said that non-repayable loans are, in essence, capital concessions that will not be requested by the person who waives them.
How do non-repayable loans work?
Specific calls are expected for the allocation of grants and grants; as a general rule, in order to be able to request this particular type of loan, a specific program is required, with all the necessary information to allow the company to be started up. Non-repayable loans are always disbursed by public bodies or public financial companies through regional calls or national tenders to distribute the funds that the European Community has made available for Italy. Among the public bodies that can grant non-repayable loans, for example, it is possible to find the European Union, the Regions and the Municipalities and of course the Italian State.
Calls for non-repayable loans
The calls for non-repayable loans differ from one another: some calls, for example, have special deadlines for the presentation of the project where others are always open or in any case periodically renewable, some calls are addressed to particular regions while others are oriented to areas and much smaller territorial areas, some calls are aimed at specific sectors and types of companies where others focus on achieving particular objectives, etc. Anyone wishing to participate in calls for non-repayable loans and / or subsidized loans must simply present a flexible project to the provider, in compliance with the conditions and specific deadlines set by the call for tenders. For example, the project may present the preparation of a work plan with economic and financial information on the activity, a marketing plan with specific indications on commercial strategies, and a planning of the company trend over the years that will follow the project. Once the project has been completed, it must be submitted to the provider together with the relative specific forms.
Non-repayable state loans
When we talk about funding from the stat or things get very difficult. Generally speaking, non-repayable state loans are set aside for unemployed or youth or female entrepreneurship. In any case, this particular type of subsidized financing is not permanently allocated, so the only way to get information quickly is to stay updated. For this specific type of loans my advice is to update on the website www. impresainungiorno.gov.it , where the public administration communicates the possibility of non-repayable financing to companies with the calls for tenders and how to obtain the funds. Even in this situation I can say that the funds are mainly for young entrepreneurs and innovative start-ups.
Non-repayable regional funding
What are the loans provided by the regions? It must be said, immediately, that the regions are the bodies set up to manage most of the European funds . And it is precisely for this reason that we have said several times to hear the offices of their region to see if there is the possibility of having a subsidized loan. Usually these products are offered with competition notices that allow you to arrive at a selection where, all rightful claimants, are classified according to merit requirements (or, in any case, particular characteristics specified in the call itself) to declare who can access these loans are so convenient.
Examples of non-repayable regional loans
Loans for lost funds Emilia Romagna : They are nothing but funding for research and development with which it is possible to acquire non-repayable capital for research (up to 40% of the investment) and for development (up to 20% of the investment ) of innovative activities that need funds;
Non-repayable loans Campania, Lazio, Liguria, Calabri Lombardia, Marche, Molise, Puglia, Piedmont, Veneto : Funds are made to support the establishment of young farmers, aged between 18 and 39 years, in a business agricultural activity present on the national territory.
Loans can be combined with other benefits
We must say that non-repayable loans can easily be combined with other benefits provided for on a national or local level. For this reason, even a company that has benefited from non-repayable loans has the opportunity, for example, to obtain other facilitated funds to take charge of further development phases of its company while, obviously, it will have to refrain from requesting access to the contributions allocated by the same announcement of which the same company has already had the opportunity to use.
What are the non-repayable loans usually destined for?
Usually the non-repayable and subsidized grants given by public bodies can be used to purchase capital goods, which are essential for starting up the business activity or for the consolidation, upgrading and development of an existing company. For example, non-repayable loans can be used to cover expenses such as the purchase of machinery , the preparation of training and development courses, the acquisition of consultancy, patents, trademarks, advertising and marketing, certifications.