El Salvador Announces New Finance Production Program
The Ministry of Economy has announced the availability of non-refundable co-financing line entitled: "Dynamic Start Up: Seed Capital."
Wednesday, October 12, 2011
A press release from the Ministry of Economy of El Salvador reads:
The Ministry of Economy (MINEC), through the Productive Development Fund (FONDEPRO) on October 12 announced to businesses, support institutions for start-ups, and the general public, the availability of a co-financed NON-REFUNDABLE line called: "Dynamic Start Ups: Seed Capital" with the aim of promoting economic development in the country, supporting innovative projects with growth potential, and competitive advantages.
According to Economy Minister Hector Dada Hirezi the launch of this line is intended to support projects by businesses in the startup phase, whose main features are to meet market needs through innovations in products, processes , designs, packaging, business models, and technology, among others, and which will become legally registered companies capable of generating economic impact through job creation and sales.
The Ministry of Economy of El Salvador has made available to employers a portfolio of funds to be disbursed during the year.
A press release from the Ministry of Economy of El Salvador reads:
Productive Development Fund (FONDEPRO) of the Ministry of Economy has made available to businesses, this January 20th , a portfolio of funds which are ready to be disbursed during the current year in order to improve competitiveness and create economic impact in El Salvador.
The funds provided by the EU and Holland will go toward the Crear Empresas ("Business Creation") Program
The program, coordinated by the Ministry for Development, Industry and Commerce (MIFIC), will begin next year with the aim of financing projects from small and medium sized enterprises (SMEs).
FUSADES, a Salvadoran foundation, is working to create Central America's first angel investor network.
Such network would be composed of angel investors, who would invest in projects with innovative ideas, at the very beginning of their life-cycle. According to studies, several SMEs fail to survive in their first three years, mostly due to lack of funding and little knowledge of how to run a business.
In addition to non-reimbursable funds, Panamanian entrepreneurs will receive technical assistance for elaborating business plans.
Congress is discussing Law 35, which comprises the creation of the Entrepreneurship Fostering Fund. This includes a Seed Capital trust fund, and resources for Technical Assistance, Guarantees and Micro-credit.
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