ON zero-rate loans for new businesses: software for a young company

How it works

ON is a MIMIT measure run by Invitalia, open since 19 May 2021. It works first come, first served, with no ranking and no deadline, across Italy.

• projects up to EUR 1.5 million for companies up to 36 months old, up to EUR 3 million between 36 and 60 months, to expand or transform the business;
• up to 90% of eligible costs;
• a zero-interest loan for up to 10 years, with half-yearly instalments on 31 May and 30 November;
• no guarantee for loans up to EUR 250,000;
• an advance of up to 40% against a bank guarantee.

You apply online with SPID, CNS or CIE, a digital signature and certified email (PEC), with the business plan. Two interviews follow.

What counts on the IT side

For the youngest companies, software and ICT services count if they serve production and management. Working capital, which includes hosting and housing, counts up to 20% of investments; I found nothing on how it's treated now that the grant share has ended.

Websites, e-commerce and cybersecurity aren't named. Costs must be goods or services lasting several years and recorded as assets: a monthly subscription hardly qualifies.

Timing

Costs count only after the application, and a down payment invoiced earlier excludes the whole supply. The programme must be finished within 24 months of signing, with a possible extension. Payments come in at most five progress reports, each of at least 10% of the investment, and the assets must be kept for three years.

What I do

For a company that needs to build its product or its own management software:

• a web application, a mobile app or a PWA, split into phases that match the progress reports;
• servers and releases;
• the documents Invitalia asks for on IT services, and the code handed over to you.

If you're an innovative start-up, look at Smart&Start Italia too.

What I don't do

I don't file the application or write the business plan. This page summarises the decree of 4 December 2020, circular no. 117378 of 8 April 2021, the notice of 30 June 2026 and Invitalia's pages and FAQ, as read on 5 November 2026. The rules and the circular are the reference.

Frequently asked questions

Is there still a grant share?

No. In its notice of 30 June 2026 Invitalia said that for applications filed from 1 July 2026 the support is granted only as a soft loan. The zero-rate loan of up to 10 years remains. I found nothing saying whether the loan alone now covers the full 90%.

Who can apply?

Micro and small businesses set up as companies no more than 60 months ago, or the people about to set one up, where more than half of the partners and shares belong to people aged 18 to 35 or to women of any age. Sole traders and simple or de facto partnerships are excluded. It applies across Italy.

Which IT costs count?

For companies up to 36 months old: software and ICT services matched to the business's needs, including AI, blockchain and IoT, and services such as architecture, hosting and databases if linked to the investment; specialist consulting up to 5%. Between 36 and 60 months, only amortisable software, patents, licences and trademarks.

Can you be the supplier?

Yes, as long as I'm not a partner, director or employee of the company, or a relative of the partners. Turnkey contracts are excluded, so I split the work and invoices into phases, with days and rates. For IT services Invitalia asks for a report, a schedule, a requirements analysis and user manuals, and I prepare them.

Read more

• The service: Custom business web apps
• More pages like this: Italian grants and incentives for IT