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: