Guarantees in the context of the Covid crisis

90% guarantee product

To cover the short-term liquidity needs of companies due to the coronavirus crisis, federally secured working capital loans are granted.
Applications are made to the company’s principal bank, which then calls in aws for SMEs and OeKB for large companies. The application is decided on by COFAG.
Quota 90%
Companies must not have been in difficulties as per 31-DEC-2019 (definition under state aid law)
Maximum guarantee period is 5 years, extension possible upon application
Maximum interest rate ceiling 1% p.a. fixed, guarantee fee 0.25–2%/year (state aid law)
Amount of credit may not exceed (state aid law):
- twice the annual wage and salary amount
- 25% of total turnover; or
- in duly justified cases, liquidity needs for the next 18 months for SMEs

100% guarantee product

Guarantee quota: 100% without collateral (analogously to the Swiss model)
Liability period: 5 years
In the first two years, cap of 0% p.a. fixed, then 3-month Euribor plus 75 basis points
Credit limit: max. € 500,000 (10% of annual turnover)
Start of repayment not before 01-JAN-2021
No guarantee fees
“Company in difficulty” (before the crisis) not possible (state aid law)
Financing bank confirms the essential conditions (exhaustive list of the essential conditions in the directive), Aws carries out automated checks, COFAG issues guarantee, principal bank disburses

All relevant guidelines (KMU-FG, Guarantee Act, ABBAG-G Ordinance) can be downloaded here: