Participatory Loan Agreement Spain (Acuerdo de Préstamo Participativo)

A Participatory Loan Agreement Spain (Acuerdo de Préstamo Participativo) is a hybrid financial instrument under which a lender (prestamista) extends capital to a Spanish company (sociedad mercantil) with repayment terms and interest specifically linked to the borrower's economic activity, business results, or equity value — treated as fondos propios (equity) for the purposes of calculating the company's solvency ratio under Spanish accounting rules, governed by Real Decreto-Ley 7/1996, de 7 de junio, sobre Medidas Urgentes de Carácter Fiscal, de Fomento y Liberalización de la Actividad Económica, Article 20, and the Resolución del Instituto de Contabilidad y Auditoría de Cuentas (ICAC) of 5 March 2019.

Article 20 of RDL 7/1996 establishes the defining characteristics of the préstamo participativo: (1) the lender participates in the borrower's profit or loss — the interest rate must include a variable component linked to the company's actividad empresarial (business activity), which may be determined by net profit, turnover, equity value, or total assets; (2) the lender may also agree a fixed interest component in addition to the variable element; (3) prepayment is only permitted when offset by an equivalent capital increase (ampliación de capital) by the borrower company — this restriction is essential for the instrument's qualification as fondos propios under the Plan General Contable (PGC) approved by Real Decreto 1514/2007; and (4) in insolvency proceedings (concurso de acreedores), the participatory lender's claims rank behind ordinary creditors under the Texto Refundido de la Ley Concursal (Real Decreto Legislativo 1/2020), making the instrument subordinated (crédito subordinado).

The ICAC Resolución of 5 March 2019 clarified that participatory loans qualify as equity (patrimonio neto) in the borrower's balance sheet when three conditions are met: the lender does not acquire voting rights; the lender's remuneration is solely contingent on the company's results; and early repayment is restricted as stated in Article 20 RDL 7/1996. This accounting treatment makes the préstamo participativo particularly attractive for Spanish companies at risk of incurring in causa de disolución under Article 363.1(e) of the Ley de Sociedades de Capital (RDL 1/2010) — when net assets fall below half the share capital — because the loan bolsters the fondos propios without diluting existing shareholders through a formal equity issuance.

Public financial institutions in Spain — principally Empresa Nacional de Innovación (ENISA), under the Ministerio de Industria, Comercio y Turismo — are the primary public providers of participatory loans to SMEs. ENISA offers participatory loan lines for young entrepreneurs (Jóvenes Emprendedores), growth companies (Crecimiento), and technology companies under its annual convocatoria, with loan amounts ranging from €25,000 to €1.5 million, terms of 4 to 9 years, and interest linked to Euribor plus a spread tied to the company's return on equity. Private venture debt funds and family offices also use the participatory loan structure as an alternative to venture capital, preserving founder control while providing growth capital.

The Agencia Tributaria (AEAT) treats variable interest on participatory loans as a deductible expense in the borrower's Impuesto sobre Sociedades (IS) return under Ley 27/2014 del IS, Article 15, applying the same rules as ordinary loan interest — subject to the thin capitalisation (subcapitalización) limit of 30% of EBITDA under Article 16 LIS for net financial costs exceeding €1 million. From the lender's perspective, variable interest income is taxed as rendimiento del capital mobiliario under the Ley del IRPF (Ley 35/2006) for natural persons or as ordinary income under the IS for corporate lenders.

A Participatory Loan Agreement Spain is required when a Spanish Sociedad Limitada (S.L.) or Sociedad Anónima (S.A.) needs growth capital but wishes to avoid share dilution — founders and investors choose the participatory loan because the lender receives interest linked to company performance rather than an equity stake, and existing shareholders retain full voting control.

The agreement is needed when a company's balance sheet shows fondos propios below 50% of the registered share capital (capital social), placing it at risk of mandatory dissolution under Article 363.1(e) of the Ley de Sociedades de Capital — a participatory loan, classified as equity under the ICAC Resolución of 5 March 2019, temporarily corrects the imbalance without requiring a formal capital increase approved by a Junta General Extraordinaria de Accionistas before a Notario.

A préstamo participativo is required when a startup or SME seeks ENISA financing — the Empresa Nacional de Innovación (ENISA) exclusively channels public SME support through the participatory loan structure, requiring compliance with Article 20 of RDL 7/1996 as a prerequisite for approval of the convocatoria annual application.

The agreement is needed when a private equity fund or family office provides mezzanine financing to a Spanish company in anticipation of a used buyout (LBO) or trade sale, using the subordinated nature of the participatory loan under the Texto Refundido de la Ley Concursal to separate the mezzanine tranche from senior debt in the capital structure.

A Participatory Loan Agreement is required when a founder or shareholder of a Spanish company lends capital to the company in a form that reinforces the balance sheet before a bank credit application, audit, or financial due diligence — the loan's equity classification prevents it from adversely affecting the company's use ratios reviewed by lenders under Circular 4/2017 del Banco de España.

The agreement is also needed when a business angel (business angel) or accelerator in Spain structures investment in a startup using a convertible participatory loan, combining Article 20 RDL 7/1996 terms with a conversion right (derecho de conversión) into share capital upon a qualifying financing round — a common pre-seed and seed stage structure in the Spanish startup ecosystem under the Ley 28/2022 de fomento del ecosistema de empresas emergentes (Ley de Startups).

Under the Ley de Sociedades de Capital (LSC) RDL 1/2010, the Registro Mercantil maintains the register of Spanish companies. The Código de Comercio 1885 governs commercial obligations. The Agencia Estatal de Administración Tributaria (AEAT) administers Impuesto sobre Sociedades (IS) under Ley 27/2014. The Comisión Nacional de los Mercados y la Competencia (CNMC) enforces competition law. The Código Civil governs general contractual obligations under Article 1255.

A valid Participatory Loan Agreement Spain under Real Decreto-Ley 7/1996 Article 20 must contain the following essential elements to qualify as a préstamo participativo under Spanish law, achieve fondos propios treatment in the borrower's accounts, and be enforceable before the Juzgado de lo Mercantil.

Identification of Parties: Full legal names, NIF numbers, and registered addresses of the lender (prestamista) and the borrowing company (prestatario). For the borrower, the CIF assigned by the AEAT, the Registro Mercantil entry (tomo, folio, hoja, and inscripción number), and the full name and authority of the signing administrator (administrador único, solidario, or mancomunado, or consejero delegado with sufficient powers under the Ley de Sociedades de Capital) must be stated.

Loan Amount and Disbursement: The principal (importe del préstamo) in euros, the disbursement date or schedule (if disbursed in tranches — tramos), and the bank account (IBAN) to which funds are transferred. Where disbursement is in tranches, the conditions precedent (condiciones suspensivas) for each tranche — typically milestone-linked under the startup context — must be specified.

Variable Interest Component (Mandatory): The specific formula for computing the variable interest component (remuneración variable) linked to the borrower's business activity — this is the defining element of the préstamo participativo under Article 20.1 RDL 7/1996. Common formulas include: percentage of net profit (beneficio neto) after tax; percentage of EBITDA (earnings before interest, taxes, depreciation, and amortisation); percentage of net turnover (cifra de negocios neta) under the Plan General Contable; or a return-on-equity (ROE) multiple. The accounting standards to be used (PGC — Plan General Contable, approved by RD 1514/2007) and the financial statements (cuentas anuales) to be referenced must be specified, along with the timing of variable interest payment after approval of the annual accounts by the Junta General.

Fixed Interest Component (Optional): Where agreed, the fixed interest rate (remuneración fija) expressed as an annual percentage of outstanding principal, the payment frequency (monthly, quarterly, semi-annual), and the basis for calculation.

Loan Term and Repayment Restriction: The loan term (plazo), the maturity date, and the explicit restriction on prepayment (amortización anticipada) — Article 20.1.b RDL 7/1996 requires that early repayment be conditional upon a simultaneous increase in share capital (ampliación de capital) by the borrower company of at least the repaid amount, preventing the loan from being repaid in a way that would weaken the company's equity position. This clause is non-negotiable for the loan to qualify as fondos propios.

Subordination in Insolvency: Explicit acknowledgment that the participatory loan constitutes a crédito subordinado under Article 281.1.3° of the Texto Refundido de la Ley Concursal (RDL 1/2020), ranking behind ordinary creditors (acreedores ordinarios) and privileged creditors (acreedores privilegiados) in any concurso de acreedores affecting the borrower, but ahead of equity holders.

Information Rights and Financial Covenants: The lender's right to receive annual accounts (balance, cuenta de pérdidas y ganancias, memoria) within a specified period after approval by the Junta General, quarterly management accounts (cuentas de gestión), and notice of material adverse events (cambios materiales adversos). Financial covenants — minimum EBITDA, maximum use ratio (deuda neta / EBITDA) — may be included, though less common in participatory loan structures than in senior debt.

Tax Treatment: Confirmation that variable and fixed interest payments are deductible in the borrower's Impuesto sobre Sociedades return under Article 15 of Ley 27/2014, subject to the thin capitalisation limit under Article 16 LIS, and constitute rendimiento del capital mobiliario for natural person lenders under Ley 35/2006 del IRPF.

Forms-legal.com provides this Participatory Loan Agreement Spain template as a reference document. The préstamo participativo is a sophisticated instrument requiring advice from a abogado mercantilista and, for accounting treatment, consultation with an auditor or the ICAC framework before execution.

Under the Ley de Sociedades de Capital (LSC) RDL 1/2010, the Registro Mercantil maintains the register of Spanish companies. The Código de Comercio 1885 governs commercial obligations. The Agencia Estatal de Administración Tributaria (AEAT) administers Impuesto sobre Sociedades (IS) under Ley 27/2014. The Comisión Nacional de los Mercados y la Competencia (CNMC) enforces competition law. The Código Civil governs general contractual obligations under Article 1255.