INDUSTRIAL PRODUCTIVE INVESTMENT SUPPORT FUND (FAIIP) is allocated €1.5 billion in 2023

At IMPULSO we are pleased to remind you that the INDUSTRIAL INVESTMENT SUPPORT FUND (FAIIP) of the Ministry of Industry, Trade and Tourism has a budget allocation of €1.5 billion for 2023, aimed at stimulating industrial development, strengthening competitiveness, and maintaining the region’s industrial capabilities.

This fund represents the evolution of the former REINDUS program of the Ministry of Industry.

Below, we summarize the main features of these grants:

BENEFICIARIES

The FAIIP will finance private commercial companies and cooperatives that carry out or are planning to carry out a productive industrial activity or industrial services activity, classified under Section C–Divisions 10 to 32 of the National Classification of Economic Activities (CNAE 2009).

This also includes activities classified under section 38.3x, provided they hold a waste management authorization at the time of application, and the project to be carried out is classified as belonging to the following recovery operations: R2, R3, R4, R5 (excluding soil remediation), R6, R7, R8, R9, R11, as defined in Annex II of Law 22/2011, of July 28, on waste and contaminated soils.

Activities complementary to industrial production (CNAE 82.92, 52.10, 33 with exceptions and always related to industrial activity).

Industry services activities (CNAE 71.12 and 71.20).

PROJECT TYPES

• Creation of industrial facilities.
• Relocation of industrial facilities.
• Improvements and/or modifications to production lines. Expressly including the productive implementation of “Connected Industry 4.0” technologies and actions aimed at environmental sustainability

ELIGIBLE COSTS

• Civil works: urbanization and piping, expressly excluding land.
• Construction: acquisition, construction, expansion, or adaptation of industrial buildings, as well as their facilities and equipment not directly linked to the production process.
• Production machinery and equipment, excluding external transport elements, furniture, and tools. These may be new or used.
• Intangible assets: Specific software linked to the production process; patents, licenses, trademarks, and similar; research and development, only to the extent that they are directly linked to the production process and to the production machinery and equipment included as fundable concepts in the application.
• Costs for in-house staff and external collaborations necessary for the design and/or redesign of processes, directly linked to the machinery and equipment included in that budget item.
• Credit rating costs associated with the financing application, if required.
• Account auditing costs for companies not subject to mandatory auditing (during the term of the financing).
• Auditing costs associated with justifying the investment within the framework of the financed project.

PROJECT REQUIREMENTS

• Investment execution period: Budget items executed within the 9 months prior to the application date, as well as those executed up to 2 years after the date the financing is formalized, will be eligible for funding.
• Investments in production machinery and equipment and production-specific software must account for at least 50% of the Fundable Budget.

TYPE AND INTENSITY OF SUPPORT

The grantable amount for each transaction is up to 75% of the project’s fundable budget, with transaction amounts ranging between €200,000 and €60 million. For large investment projects, the loan amount may reach up to 10% of the Fund’s accumulated allocation; in 2023, the maximum loan would be €180 million.

Financing will be provided through ordinary loans, participating loans, temporary and minority equity participation, or mixed formulas combining the above, with long-term transactions (up to 10 years) and extended grace periods (up to three years for ordinary and participating loans).

The cost of financing will be applied based on the company’s financial rating, the project, the type of transaction, and any discount that may apply for meeting industrial impact criteria.

For ordinary loans, there is the option to choose between a fixed or variable interest rate.

• Fixed interest rate set monthly, with a possible 0.5% discount if certain requirements are met.
• Variable rate: 6-month Euribor plus a spread of between 1.65 and 2.5 percentage points, with a minimum equivalent to the applicable spread, with a possible 0.5% discount if certain requirements are met.

APPLICATION DEADLINE

Applications accepted on an ongoing basis.

05/25/2023