Endorsement line of the Ministry of Economic Affairs and Digital Transformation

Guarantee line is an aid that pintends to mitigate the economic effects of the coronavirus, with the objective of guaranteeing liquidity and meeting the working capital needs of SMEs, companies and the self-employed to maintain employment and productive activity.What can the guarantee be requested for?The guarantee can be requested to guarantee renewals granted to companies and the self-employed, as well as to apply for new loans to meet financing needs such as: -Need for working capital -Other liquidity needs, including those derived from maturing financial or tax obligations. -Invoices-Wage paymentsWho can request it?Self-employed workers and companies, through financial institutions and through the formalization of new financing operations or renewal of existing ones. Loans or renewals can be requested through the Guarantee Line for self-employed workers, SMEs and companies from all sectors of activity, who must have their registered office in Spain and that the activity they carried out has been affected by Covid-19, provided that companies and self-employed workers: -They are in the Temporary Framework of Aid of the European Union and not in a situation of crisis at 31 .12.2019.-They are not subject to bankruptcy proceedings as of March 17, 2020.-They are not in a situation of delinquency.Where can you request the guarantee?People interested in this line should contact financial credit institutions, payment institutions or electronic money institutions or any of the credit institutions. In addition, they must be registered and supervised by the Banco de España and have signed a framework contract with ICO to participate in the Guarantee Line.What is the maximum amount per customer?The maximum amount that can be formalized with a guarantee for customers is determined by the European regulations on state aid applicable in each case: - For loans or renewals of up to 1.5 million euros, in one or more loan transactions to self-employed individuals and companies, the specific provisions of the European Union on de minimis aid (authorized by the European Commission without the need for prior notification) .- For loans or renewals of more than 1.5 million euros, or for smaller amounts That they can't to comply with the de minimis regime, the provisions of the European Commission's Temporary Framework for State Aid will apply, both for self-employed individuals and companies that meet the status of an SME, and for companies that do not meet the status of an SME.What is the maximum time period for operations?They can be performed for a maximum period of 5 years.What is the term of validity of the guarantee? The term of the guarantee issued will coincide with the term of the transaction, up to a maximum of 5 years.What is the maximum percentage of guarantee coverage?For other companies other than SMEs and the self-employed, the guarantee covers 70% in the case of new loan transactions and 60% for renovations. In the case of SMEs and the self-employed, the guarantee guarantees 80% of the renewal and of the new operationsFor more information On the guarantee you can consult the report of the Ministry of Economic Affairs and Digital Transformation.