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: