The Official Credit Institute and financial entities sign the collaboration agreements of the Line of Guarantees, which will cover loans granted since last March 18

The new tranche, of 20,000 million euros, equals the previous amount. 100% of the funds are used to guarantee the operations of SMEs and the self-employed, considering that they are the agents of economic activity that most require this support at present.

The activation of this new section is carried out before the total consumption of the first one in order to cover all possible operations in the portfolio and allow entities that are close to exhausting the quota assigned to them in the first section for SMEs and the self-employed can continue doing flow credit to your customers.

In this way, the Government contributes to guaranteeing the working capital needs of companies with the aim of preserving their activity and maintaining employment.

With the latest available, financial institutions have registered with the Official Credit Institute more than 44,000 financing operations, for a guaranteed amount of 3,533 million euros, which have allowed the granting of more than 4,550 million euros of financing.

Of the total operations, 99% correspond to new loans and renewals of self-employed and SMEs, for a guaranteed amount of 3,360 million euros, for loans of more than 4,200 million euros.

A total of 86 financial entities have already signed the corresponding collaboration agreements and can therefore distribute the financing with the guarantee of the State to clients who need it.

The wide coverage and territorial implementation of credit institutions, rural savings banks, financial credit institutions, electronic money institutions and payment institutions guarantee the distribution of guarantees between companies and self-employed workers in all sectors of activity and anywhere in the country. country.

Characteristics of the Guarantee Line

The second section of the Guarantee Line maintains the same characteristics and the same processing mode as the initial section. These guarantees can be requested exclusively by SMEs and the self-employed affected by the economic effects of COVID-19, provided that the applicants were not in default on December 31, 2019 and in bankruptcy procedure on March 17, 2020.

The guarantee guarantees 80% of the new loans and renewals of operations requested by the self-employed and SMEs and will be valid for the term of the loan granted, with a maximum of five years.

In order to guarantee that SMEs and the self-employed are the real beneficiaries of the guarantees, the Council of Ministers Agreement reinforces and specifies the provisions of the previous one. It is explicitly established that the price of credits for clients who benefit from the guarantee must, in general, be lower than that of loans and other operations for the same type of client that do not have said guarantee.

Likewise, it includes the prohibition that entities commercialize other products or services or condition the granting of the guaranteed loan to their contracting.

Interested SMEs and self-employed workers may request the guarantee for their operations until September 30, 2020. The term may be extended, always in line with the regulations of State Aid of the European Union, by Agreement of the Council of Ministers.

The distribution of the line of guarantees among the operators will be carried out with the same criteria as those established for the first tranche, based on the market share reported by each financial institution to the Bank of Spain at the end of 2019.

The maximum volume assigned for each entity will be valid until June 30. From that date, the amounts of guarantees assigned and not used by the entities will be distributed among the rest of the operators, proportionally to the amount of the guarantees that they would have used up to that date.

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