Liquidity Measures
Funding for credit institutions
Government Measure
Government will grant up to €100b in guarantees for funding provided by credit institutions.
Net indebtedness limit for the Spanish Official Credit Institute (ICO) raised by €10b to increase ICO facilities providing funding to companies and self-employed.
The guarantee will cover 80% of new financing operations and renewals for self-employed and SMEs.1
For all other companies, the guarantee will cover 70% in the event of new loan operations and 60% for renewals.
There is no limit to the amount of guarantee per beneficiary, subject to EUs state aid rules.
1Companies with (i) less than 250 employees; and (ii) an annual turnover that does not exceed €50m or with an annual balance sheetthat does not exceed €43m qualify as an SME.
Eligibility
The self-employed, SMEs, and companies in all sectors of activity that:
- have their registered office in Spain;
- have been affected by the economic effects of COVID-19; and
- require funding to meet their needs arising from managing their invoices, working capital (cash), financial or tax obligations, or other liquidity needs.
For more information about eligibility, please see here and here.
Supervising Authority
The Ministry of Economic Affairs and Digital Transformation and the Council of Ministers.
The financing will be available through any of the credit institutions, financial credit establishments, payment institutions, or e-money institutions that have signed the corresponding collaboration agreements with the ICO.
Applications to be made directly with the above mentioned institutions.
Legislation available here.
Availability
From 18 March 2020 to 30 March 2020
Increasing of the CESCE insurance cover facility
Government Measure
The Spanish Export Credit Agency (CESCE) has been authorized to provide insurance cover amounting up to €2b for the working capital credit facilities needed by SMEs (excluding micro-companies being those with less than 10 employees and with an annual turnover or annual balance sheet that does not exceed €2m) and larger (non-listed) companies.
There is no requirement that the use of the funds be linked to the performance of export contracts and should respond to new financing needs and not to pre-crisis situations. The percentage of credit risk cover shall not exceed 80%. The insurance premiums may vary whether the beneficiary is an SME or a non-SME, in accordance with the di minimis EU regulations.
Eligibility
Eligibility: working capital credits for export companies will be eligible, without the need for a direct relationship with one or more international contracts, provided that they respond to new financing needs and not to situations prior to the current COVID-19 crisis.
Beneficiary: SMEs and bigger non-listed companies when:
- they are internationalized companies or in the process of internationalization;
- they face a liquidity problem or lack of access to financing as a result of the impact of the COVID-19 crisis on their economic activity; and
- they are not insolvent or in pre-insolvency state.
For more information about eligibility, please see here and here.
Supervising Authority
The Spanish Export Credit Agency (CESCE).
Legislation available here.
Availability
From 18 March 2020.
R&D&I
Government Measure
The sums in the Fund for “Red Cervera” Technical Provisions and R&D&I projects are allowed to be used to cover any risks that the Centre for Technological and Industrial Development (CDTI) may incur by providing loans to finance R&D&I projects of small and medium enterprises, and of mid-cap companies.
Eligibility
SMEs and mid-cap companies operating in ay sector, with registered office in Spain, which are developing a national R&D&I project supported by the Centre for Technological and Industrial Development.
For more information about eligibility, please see here.
Supervising Authority
Centre for Technological and Industrial Development (CDTI).
Applications for the scheme can made by companies here.
Legislation available here.
Availability
From 11 March 2020