Canary Islands Entrepreneurship Support Initiative

Overview

The Canary Islands government has introduced a new initiative to boost small entrepreneurs and self-employed individuals by subsidizing the interest rates on business loans. This measure aims to make financing more accessible for those investing in tangible and intangible assets crucial for their business growth.

Beneficiaries must be registered in the Canary Islands and comply with tax and social security obligations.

Benefits

• The aid provides a dual benefit:
  • Lowering interest costs for up to three years
  • Simplifying access for young entrepreneurs, encouraging generational renewal in local businesses
• Loans must be backed by AvalCanarias, a guarantee company that reduces financial risk and offers more favorable credit conditions.
• The subsidy covers a reduction of 2 percentage points in interest rates—2.5 if the applicant is under 45—applied during the initial three-year period and paid in a lump sum to reduce the principal.
• Applications are exclusively online, and recipients must prove their investments align with the economic activity to qualify.

Objectives

• Diversify and strengthen the Canary Islands’ economy by fostering local entrepreneurship.
• Provide vital financial support to entrepreneurs.
• Ensure transparent and effective use of public funds.

Safeguards and Control

• Incorporates safeguards to prevent misuse:
  • Detailed control and reporting obligations for beneficiaries and collaborating entities.
  • Emphasis on transparency, fairness, and efficient resource use.

Government Commitment

"The new policy underlines the government's commitment to encouraging self-employment and resilient local businesses in the region."