Funding for youth entrepreneurship – Lending

Are you a young entrepreneur and you want to create, from scratch, your company but do not have cash at your disposal? It ‘very difficult, in times of crisis, to undertake a new business. But there is good news for the brave young entrepreneurs: you can in fact access funding dedicated to youth entrepreneurship in a simple and quick way. In fact, the law n. 95/1995 on loans to youth companies was conceived and issued by the Legislator precisely to encourage and encourage the development of youth enterprises in the most disadvantaged areas of the country. This financial law establishes the possibility of accessing various forms of non-repayable loans or low-interest mortgages to help young people on the difficult path to start their business.

But who are those who can benefit from this funding?

But who are those who can benefit from this funding?

First of all the companies that, to obtain the dedicated loans, must be made up exclusively of young people between the ages of 18 and 35. There is also the possibility of accessing this funding also for companies composed of more than 2/3 of young people aged between 18 and 29 years of age.
New partnerships (Snc and Sas), cooperative companies or corporations (Spa; Sapa; Srl) can also access this financial protection. They can not access the company with a sole shareholder, the de facto companies and sole proprietorships.
The residence requirement is very important . The members of the companies must in fact be resident in the following areas:

  • The target areas .: Calabria, Sicily, Sardinia, Basilicata, Puglia, Campania;
  • Objective II areas. and areas exempted: Molise, Abruzzo and common areas.

Once the subjects that can access the financing for youth entrepreneurship have been identified , we find out which are the expenses that can be financed. The law n. 95/1995 stipulates that they can get loans dedicated people who have to bear the following expenses:

  • expenses for the production of goods in the following sectors: crafts, agriculture and industry;
  • expenses to be incurred for the supply of services relating to any production sector.

Dedicated loans

Dedicated loans

Funding cannot be obtained from youth entrepreneurial projects that are not characterized by the requirement of “newness of the initiative” or that do not lead to any increase in the production base and employment. Finally they can not enjoy such loans dedicated to projects that provide a higher 2,582,284.50 USD investment.

They can be admitted to the financings of the law n. 95/1995 those companies that must bear the following expenses:

  • purchase of land: it must be equal to 40% of eligible expenditure;
  • execution or purchasing of building works including the costs necessary for the building permit or for the final design;
  • expenditure necessary to carry out the study of the feasibility of the business plan with market analysis;
  • expenses for purchase of tangible and intangible assets multiyear instrumental to the realization of the production cycle;
  • expenses for purchase of machined parts, systems, connections and equipment.

The expenses incurred by the entrepreneur before submitting the loan application are also not allowed. No charges are allowed for the purchase of goods that belong to the members or their relatives are not allowed as well as investments in the agriculture sector.

But what, on the practical side, the facilities that the law n. 95/1995 establishes for youth entrepreneurship? It provides for two types of aid:

  • real services needed in the start-up phase of the business activity;
  • financial incentives;

The latter are divided into investment costs and management fees. The law provides that investment expenses can obtain grants and subsidized loans. These are the expenses that the entrepreneur bears to carry out building works, feasibility studies, connections, plant purchases, machinery, equipment, patents, intangible assets, software, etc.
The law, however, provides repayable contributions for operating expenses. They involve the purchase of goods, raw materials, finished or semi-finished products, property leases …
Even the actual facilities are divided into two categories: instrumental real services for enterprise phase of start (the so-called start-up). The information and support services necessary to give young entrepreneurs the possibility of defining their business plans in the best way are financed. They are also eligible for funding even those training services, technical assistance that can help young people to solve the first problems associated with the start of the business.