THE 2020 CALL FOR THE INDARTU PROGRAM SUPPORTING PRODUCTIVE INVESTMENT PROJECTS IS NOW OPEN

We at IMPULSO are pleased to inform you that the 2020 call for the INDARTU PROGRAM, published by the Basque Government’s Department of Economic Development and Infrastructure, is now open. Its aim is to support job-creating productive investment projects that drive competitive improvement and economic development, intended for the creation and/or expansion of production capacity in the Left Bank of the Nervión Estuary and Oiartzualdea areas, as well as other municipalities with an unemployment rate above 20% of the annual average for the Basque Autonomous Community.

Below, we summarize the main features of this funding program, which has a budget of €12,000,000.

BENEFICIARIES

Large companies and SMEs that are extractive, manufacturing, production, or advanced technical services businesses for these sectors, as well as logistics services companies, excluding transport, whose investments covered by the grant are located in the Left Bank of the Nervión Estuary and Oiartzualdea areas of the Basque Autonomous Community, which are:

• Oiartzualdea (Gipuzkoa), made up of the following municipalities: Errenteria, Pasaia, Lezo, Oiartzun, Hondarribia, Irun, and Hernani
• Nervión Estuary (Bizkaia), made up of the following municipalities: Sestao, Ortuella, Valle de Trápaga-Trapagaran, Abanto y Ciérvana-Abanto Zierbena, Muskiz, Zierbena, Portugalete, Santurtzi, Barakaldo, Alonsotegi, and Erandio.

Also, investments located in municipalities with an unemployment rate above 20% of the annual average for the Basque Autonomous Community. In this case, only investments made by SMEs will be eligible for funding. These municipalities are:

• Álava: Asparrena, Labastida, Lanciego, Moreda de Álava, Oyón-Oion, Ribera Baja, Salvatierra, and Zambrana.
• Bizkaia: Arakaldo, Balmaseda, Basauri, Bermeo, Bilbao, Busturia, Elantxobe, Güeñes, Lanestosa, Morga, Ondarroa, Trucios-Turtzioz, Urduña, Valle de Carranza, and Zalla.
• Gipuzkoa: Soraluze-Placencia de las Armas.

TYPES OF PROJECT

Job-creating productive investment projects linked to improvements in the product transformation process, increased capacity, or the development of new activities.

PROJECT REQUIREMENTS

• Incentive effect: The project may not begin before the date the application is submitted.
• Timeframe: must be carried out during the year in which the application is submitted, from the date of submission, and during the following two calendar years.
• Minimum investment: for large companies, this will be €1,750,000 plus job retention; for SMEs, it will be €300,000 plus job retention. Investments by companies that do not reach the minimum eligible investment amounts indicated above will also be considered, provided they create a minimum of 25 net jobs in the case of large companies, and a minimum of 5 net jobs in the case of SMEs.
• Own funds of the company, excluding grants: at least 25% of the investment.
• Business groups: Both the investments and the job creation to be considered must be carried out by a single legal entity, and in the case of business groups with 100% shareholding, which have several production centers, only in the production center or centers that meet the criteria of these regulations and are the subject of the investment and job creation.
• If the minimum eligible investment amounts are not reached, job creation must take place within a maximum of 6 months following completion of the project.
• The retention of jobs created or currently held must be maintained for a minimum period of 3 years.

ELIGIBLE COSTS

• Industrial property and patents.
• Software applications.
• Land and natural assets.
• Construction.
• Technical installations.
• Machinery.
• Tools and equipment.
• Other installations.
• Information processing equipment.

Investment in “Land and natural assets” and “Construction” will be considered up to a maximum amount equal to the rest of the eligible assets. If this maximum amount is exceeded, the excess investment will not be counted as eligible investment.

Minimum depreciation period of 5 years for large companies, with the asset remaining on the company’s books for at least five years. For SMEs, these periods are reduced to three years.

TYPE AND INTENSITY OF SUPPORT

Non-repayable grant of 10% of the eligible investment.

Grants will have a maximum limit that, under no circumstances, may exceed €3,000,000 per company or business group.

SUBMISSION DEADLINE

Applications open until July 15, 2020, at 12:00 PM, or until available funds are exhausted.

19/03/2020