Royal Decree-Law 8/2020 of March 17 approved an important package of measures aimed at providing liquidity to companies and preventing a complete shutdown of the State:
- Ministry of Economic Affairs: Guarantee of up to €100 billion for financing granted by financial institutions to companies and the self-employed who need to meet working capital needs, financial or tax obligations, or other liquidity requirements. Pending approval by the Council of Ministers.
- ICO: Increases its net borrowing limit by €10 billion to provide additional liquidity, prioritizing SMEs and the self-employed. ICO also works through financial institutions.
- CESCE: Insurance coverage of up to 2 billion euros for working capital loans for exporting companies.
- There are additional, smaller-scale measures for agricultural holdings and R&D projects
All these measures, pending regulation, received their first concrete form yesterday, March 26, when the Official State Gazette (BOE) published the first Resolution of the Secretary of State for Economy and Business Support on them.
This resolution orders an initial mobilization of state guarantees for business loans, worth 20 billion, divided into two tranches:
I) 10 billion for the self-employed and SMEs, which consists of a guarantee of 80% of the loans received to finance working capital (current payments to suppliers, public administrations, workers, etc.)
II) 10 billion for other companies, which consists of a 70% guarantee for new operations or 60% for credit renewal operations.
Characteristics of guaranteed loans:
- That were formalized or renewed after March 17.
- That the company is not listed as delinquent in the CIRBE as of 31/12/2019.
- That the company is not subject to insolvency proceedings as of March 17, either because it had legally initiated them, or because it met the objective requirements to do so.
The deadline to access these grants is September 30, 2020, and access to the grants is through Financial Institutions.
If you need our help to obtain more information or have any questions, please contact us via email at ambit@ambitassessor.com.
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A graduate in Economics from the University of Barcelona, he is also a Certified Actuary, Real Estate Agent, and Insurance Broker.
He furthered his training with courses in taxation, business valuation, and credit management offered by the College of Economists of Catalonia and the Center for Financial Studies (CEF).
In 2000, he became the managing partner of the firm, and since 2011, he has also been responsible for the Finance Department.
For five years, while already a member of the management team at Àmbit Assessor, he also held the positions of Deputy General Manager and Finance Director at Alco Grupo Empresarial.
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