The Government of the Balearic Islands will activate for the first time participative loans aimed at financing start-ups, especially those technology-based companies that are unable to access traditional bank credit. The measure, considered a “quasi-equity” financial instrument, aims to strengthen the entrepreneurial ecosystem of the islands and support innovative projects with high growth potential.
The Vice President and Councilor for Economy, Finance and Innovation, Antoni Costa, and the Councilor for Enterprise, Self-Employment and Energy, Alejandro Saenz de San Pedro, signed this Tuesday the agreement that launches this new tool, endowed with an initial budget of three million euros for the next three years. In the act also participated the general director of the Treasury, Financial Policy and Patrimony, Susana Pérez, and the manager of the Agency of Regional Development (ADR Balears), Silvia Delgado.
The program is designed for startups and technology projects that have a solid idea, but lack the necessary capital to develop it and do not obtain loans from private banks. With these new loans, the Govern aims to fill this financial gap, boost the growth of emerging companies and prevent projects with potential from leaving the islands in search of funding.
The Executive emphasizes that these participative loans will contribute to the transformation of the economic model through the creation of added value, innovation and qualified employment. They will also make it possible to retain talent and attract investment, preventing local initiatives with a future from moving to other territories.
The instrument will be managed through a public-private partnership model. ADR Balears will soon tender an external advisory service to manage the loans, while the Directorate General of the Treasury will supervise the process and monitor the financed operations. For its part, the Directorate General for Innovation and Digital Transformation will be in charge of certifying the innovative nature of the projects that apply for this funding.
