Covid-19 | State-guaranteed financing

In response to the Covid19 crisis, the Spanish government announced a number of exceptional measures to cope with the economic and social impact.

Concrete guidelines were issued on 24 March 2020 on public guarantees for bank loans. The aim is to secure the liquidity of Spanish companies and entrepreneurs (payment of salaries, invoices, taxes and other obligations).

The total public guarantee initially amounts to EUR 20 billion (this can be extended later) and is in principle available in equal proportions for SMEs and for large companies.

The conditions are as follows: 

  • The public guarantee on new loans or on repayment of existing loans for SMEs is 80%. For large companies, this rate is 70% for new loans and 60% for renewals or extensions of existing loans;
  • The validity of the guarantee is equal to the duration of the loan (maximum 5 years);
  • The cost to the bank: between 0.2% and 1.2%;
  • The costs for the companies: to be determined by the bank.
  • The applicant must not be in default of payment on 31/12/2019 or be involved in bankruptcy proceedings on 17/03/2020;
  • The application can be submitted until 30/09/2020; if granted, retroactive effect to 18/03/2020 is possible (e.g. with regard to other loans already granted);

How to apply?

The financing can be requested from the major Spanish banks (Banco Sabadell, Banco Santander, Bankia, BBVA, Caixabank etc). The banks have committed themselves to keep the costs at “pre-Covid19 level” and to maintain at least until 30/09/2020 the conditions of existing loans.

Interested? You can contact your bank directly but of course we are also happy to coordinate if you prefer.