New business loans: which types and how to request them

Opening a new business involves a great commitment of resources , economic but not only. It is certain that the financial commitment to be tackled is the most burdensome, above all because to start from scratch a new business, start-ups, the energy to spend are many and the money to invest must be appropriate to cope with the first years of life of the project egg. Once consolidated, the activity will find its own way and have its own livelihood. Initially, however, it needs a little help. It is essential not to have problems of an economic nature and to be sure of being able to count on a loan to have the liquidity necessary to start the new business. The current reality offers different tools from which to draw, choosing the most suitable: from subsidized loans for youth entrepreneurship to those for female entrepreneurship; from European funds , to state or regional funds . The scenario is wide. Let’s see some in specific.

New zero-interest companies

Speaking of state funds, as of January 1, 2016, applications were collected to access the ” zero interest rate ” measure, which provides a figure of 50 million euros . Specifically, these are new and updated facilities with respect to the Self-Employ mentality measure envisaged by Legislative Decree No. 185 of 2000 , Securities I. These facilities may finance new activities for a maximum value of 1.5 million euros. This possibility of access to credit is provided in particular for companies mostly owned by young people between 18 and 35 years old, set up in companies within 1 month prior to the application or alternatively set up in companies within 45 days of the request. The applications must be submitted online and a bureaucratic procedure is foreseen which also includes an assessment of merit.

What facilities does the fund provide?

The characteristics of this financial instrument are outlined and establish a zero-interest loan for a duration of 8 years and which will cover 75% of the total expenses of the new business. 15% remains at the expense of the new company. In this way, various activities can be financed:

  • Production of goods, handicrafts, agricultural products processing;
  • Supply of services;
  • Trade in goods and services;
  • Tourism

Bank loans

Each banking institution offers various instruments for access to credit , which can also be used to open new businesses with special treatment in terms of interest rates. An example is Unicredit which offers a loan to finance up to 100 thousand euros for a maximum duration of 7 years, repayable in monthly, quarterly or semi-annual installments. The criteria to be eligible for this loan are different , including a guarantee covering 60% of the loan and a contribution of 30% of the total investment plan.

Other tools

Beyond these tools, there are some that provide for a portion of non-repayable financing, which are obviously the most appropriate for a start-up. They belong to this category:

  • subsidized loans for female entrepreneurship , provided by European communities or regions;
  • Facilitated loans for youth entrepreneurship ;
Type of business Requirements
individual companies woman entrepreneur
coop or people society 60% of the component is female
limited company participation fees for 2/3 held by women
companies, consortia, associations, consulting services 70% of the shares held by women

While for young entrepreneurship what is said about the new zero-rate companies just above, in the first case the funds are disbursed by the regions in different ways depending on the same, according to territorial needs. Specifically, it is envisaged that, on pre-established costs, the company may benefit from a tax deductible from the gross tax in the tax return. The remaining part of the amount will be granted at a subsidized rate. Companies must be small : less than 50 employees, no more than 5 million euros turnover.

We can therefore argue that the loans for the new business activities envisaged by the system are different, it is sufficient to evaluate the different opportunities and to understand what may be the best choice.

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