Micro loans to promote entrepreneurship and the establishment of new companies in rural areas.
PROBLEM AND CONTEXT:
Programme included in the Strategic Plan of Burgos Province (2015-2020) lead to offer different tools to promote entrepreneurship and the establishment of new companies in rural areas (technical support, financing and training) as a means to maintain population in the territory (generating wealth, new jobs and economic activity).
This good practice is only related to the economical tool “Financing for entrepreneurs or improvement of established companies in rural areas of Burgos’ province”.
Funds are available as (micro) loans (SODEBUR’s own budget) for new investments and expansion or modernization of productive capacity (companies already operating).
o Financing is available for entrepreneurs and/or companies established in the rural areas of the province of Burgos (less than 20.000 inhabitants).
o 70% of project’s total amount (25.000 € maximum).
o 1,5 % fix interest rate (annual). Guarantees are not required (only the quality of the project.
MAIN STAKEHOLDERS AND BENEFICIARIES:
Loans are managed by the public entity, Society for the Development of the Province of Burgos (SODEBUR).
Beneficiaries are entrepreneurs or companies established in the rural areas of the territory (municipalities with less than 20.000 inhabitants).
100% local public funds.
Annual calls (300.000 € budget).
Evidence of success
Data Loans for companies and entrepreneurs (from 2012)
• 112 loans requested - 64 loans granted
• 94 new jobs and 81 consolidated jobs
• 1,097,354.88€ financing provided
• 3,652.5644€ total investment in financed projects
• Survival rate financed businesses: 98.30%
Potential for learning or transfer
Tool considered as good practice because its success in six years being implemented together with the good results obtained.
1. Tool for not only maintain economic activity but also create new jobs.
Fight against rural depopulation.
2. Support in the process of submission to potential beneficiaries.
3. Agile processing.
4. Economic quantities not too much higher but are enough to start.