- With a financing line of 20 million euros per year
- The objective is to support small businesses with less than ten employees, since they represent the 70% of the business fabric
- The municipal incubator network will detect suitable projects for microcredit and will subsequently provide advice
The mayor of Madrid, Ana Botella, and Nuevo Micro Bank SA have signed an agreement making the necessary resources available to small businesses to activate their businesses. A financing line has been enabled with 20 million of euros that will help entrepreneurs create jobs and overcome financing obstacles in the markets. The objective of the agreement is to support small businesses with less than ten employees, since they represent the 70% of the business fabric.
The municipal government and La Caixa have had various collaborative actions for years, which are now accentuated with 20 million euros annually to support an investment line aimed at micro-businesses and the self-employed. Ana Botella has declared that "this reinforcement of entrepreneurs, through the network of incubators, will detect suitable projects for microcredits and offer their promoters specific advice to reach the entity with the highest probability of approval."
Microcredits
Micro Bank, for its part, will make the La Caixa branch network in Madrid available to you. Applications will be processed there and a significant amount of resources will be reserved to meet these financial needs. The mayor recalled that "since the creation of Micro Bank, the municipal business advisory offices inform Madrid entrepreneurs about the operation of the microcredits that this entity makes available to them."
The lack of credit is one of the current problems of entrepreneurs, an essential group to strengthen the real economy and get out of the crisis. The City Council contributes with its support on different fronts to small and medium-sized businesses, alleviating their main lack, financing. Microcredits are tools that have proven effective as private loans that add their social values to economic performance. As Ana Botella has indicated, “with this formula we all win. Thus, we make possible the birth of companies whose needs would not normally be covered by traditional banking.
Madrid Emprende
This agreement is part of the set of actions developed by Madrid Emprende since 2005. Other measures encouraged from the municipal level have been the reduction of procedures for licenses and regulation of economic activities (licensing ordinance, dynamization ordinance); the lightening of tax burdens (Madrid Tax Free), or the creation of support services for entrepreneurs (Business Incubator Network).
This battery of support adds to the efforts of the private sector and other administrations. For now, there are more than 150 entities with which Madrid Emprende collaborates to deploy the City Council's initiatives aimed at business promotion. Furthermore, in collaboration with the private sector, a seed capital fund has been established that last year mobilized more than 3.3 million euros towards startup innovative, always with the objective of facilitating the conditions to access credit.
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