Mini PIA Financing Details
Total Potential Financing Available
The sum of all financial benefits (non-refundable grant, tax credit, and ELS subsidies) provides a holistic view of the financial support available to the investor. This total amount represents a significant percentage of the total project value, thereby offsetting much of the capital requirement and helping reduce the investor’s upfront and long-term financial obligations.
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Total Project Value
This is the total estimated value of the project, which includes both property acquisition costs and any renovation or restructuring expenses. It is the sum of all project costs and serves as the base for calculating eligible financing and grant amounts. The project budget, after deducting non-financeable costs, represents 30% of this total value, ensuring that the investor’s contribution meets financing requirements.
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Non-Refundable Grant (45% of Total Project Value)
This grant, provided by the regional government, covers 45% of the total project value. Since this grant is non-refundable, it significantly reduces the amount of investment capital the investor needs to provide or repay, helping alleviate the financial burden of large-scale projects. This amount is disbursed after project completion and can be used to offset the initial bank loan balance.
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Business and Technical Consultant Fees (1.5% of Non-Refundable Grant)
To facilitate the grant approval process, technical and business consultancy services are necessary. These services, covering feasibility studies, technical documentation, and project strategy, are set at 1.5% of the total non-refundable grant amount. The fee is typically deducted directly from the grant itself once approved.
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Tax Credit (15% of Total Project Value)
This tax incentive, provided by the government, amounts to 15% of the total project value. The tax credit can be applied toward the investor’s future tax liabilities, providing a long-term reduction in overall tax obligations related to the project. This benefit is meant to incentivize investment and project development by lowering future tax expenses.
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Total Yearly Interest Payment (4.2% Interest, Interest-Only for First 2 Years)
During the initial two-year interest-only period, the investor is required to cover only the annual interest payments on the loan, without repaying the principal. The interest rate is set at an average of 4.2% on the bank loan amount, which is based on 70% of the total project value. This structure reduces the upfront cash flow requirements and provides more financial flexibility during the project setup phase.
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ELS Interest Subsidy (10% of Interest Payment)
The ELS (Equivalente Sovvenzione Lorda) provides a 10% subsidy on the yearly interest payment. This reduces the effective interest payment required from the investor, effectively lowering the cost of financing during the early project stages. This subsidy is aimed at supporting development projects by reducing the financing cost burden.
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Adjusted Yearly Interest Payment
This amount represents the investor’s effective yearly interest payment after applying the ELS Interest Subsidy. By reducing the interest payment by 10%, this subsidy helps the investor maintain cash flow and reinvest any savings into the project as needed.
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ELS Guarantee Subsidy (10% of Bank Loan)
The ELS also provides a 10% guarantee subsidy, calculated based on the bank loan amount. This guarantee subsidy reduces the financial risk assumed by the lender, which may result in more favorable loan terms for the investor, such as a lower interest rate or less stringent collateral requirements. It further reduces the investor’s financial exposure.
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Non-Financeable Costs
These are necessary project-related expenses, such as notary fees, legal fees, and transaction costs, that are not covered by the bank loan or grant. The investor must cover these costs directly, and they are deducted from the initial budget amount to ensure that the total project value calculation meets regulatory requirements.
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Mari e Trulli Project Management Fee (3% of Total Project Value)
This project management fee covers Mari e Trulli’s services throughout the project lifecycle, from initial planning and securing financing to overseeing project completion. The fee, which amounts to 3% of the total project value, is typically split into milestone-based payments, with part due upon financing approval and the remainder upon project completion.
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