Law Decree no. 23 of 8 April 2020 (Liquidity Decree) – as converted by Law no. 40 of 5 June 2020, published in Official Gazette no. 143 of 6 June 2020, introduced the following main changes relating to the operations of the Guarantee Fund, which will remain in force until 31 December 2020:
- Free Guarantee;
- Maximum guaranteed amount per company raised to 5 million Euro;
- Extension of the guarantee of the Fund to companies with a number of employees not exceeding 499 (Mid Caps);
- Raising the direct guarantee to 90% for loans with a maximum duration of 72 months. This level of guarantee is recognised for a total amount of financing not higher than, alternatively to:
- Double the annual salary expenditure of the beneficiary company for 2019 or the last year available (in the case of companies set up from 1 January 2019, the maximum loan amount cannot exceed the annual salary costs expected for the first two years of activity);
- 25% of the beneficiary’s total turnover in 2019; for companies characterised by ultra-annual production cycles (joint-stock companies in the real estate and construction sectors), reference is made to the revenues from sales and services added to the changes in inventories of unfinished, semi-finished and finished products;
- Requirements for working capital or for investments in the following 18 months for SMEs, or 12 months for Mid Caps (requirement to be certified with self-certification pursuant to Presidential Decree 445/2000).
For financial transactions the duration and amount of which are not as above, the direct guarantee is raised to 80%;
- Coverage of the direct guarantee of 100% for new loans to SMEs and natural persons carrying out business, arts and professional activities, whose business activity has been damaged by the COVID-19 emergency (to be certified with self-certification pursuant to Presidential Decree 445/2000) on condition that the loans provide for:
- Minimum grace period of 24 months; maximum duration 120 months;
- Amount not exceeding 25% of the beneficiary’s total turnover or double the wage bill (for companies set up as of 1 January 2019 at the annual wage costs expected for the first two years of activity), resulting from the last balance sheet filed, or from the last tax return presented, or by self-certification pursuant to Presidential Decree 445/2000 or other suitable documentation, and in any case not exceeding € 30,000;
- Discounted interest rate.
For these loans, the intervention of the Guarantee Fund is granted automatically, free of charge and without evaluation. The Bank can disburse the loan guaranteed by the Fund, subject to formal verification of the fulfilment of the requirements, without waiting for the final outcome of the investigation by the fund manager.
Companies that have already obtained financing pursuant to art. 13, para. 1, letter m) of the Pre-conversion Liquidity Decree (which indicated a limit of a maximum amount of 25,000 Euro and a maximum duration of 72 months), may request, pursuant to art. 13, para. 1, letter m-bis) of the Liquidity Decree as converted, with regard to the amount financed and the duration, the adjustment of the loan to the new conditions introduced by the Liquidity Decree conversion law, described above.
- Eligibility of the Fund’s direct guarantee of 80% also for loans for the renegotiation of an enterprise’s debt, on condition that the new loans provide for the disbursement of additional credit to the enterprise at least equal to 25% of the amount of the outstanding debt of the loan subject to renegotiation (the additional credit is equal to 10% for renegotiation transactions whose application for admission to the Guarantee was submitted by 18 June 2020 and which were approved by the Bank by that date, as required by Circular No. 13/2020 issued on 17 June 2020 by the Guarantee Fund, while it is equal to 25% for renegotiation operations whose request for admission to the guarantee has been submitted from 19 June 2020). In such cases, the Bank must send the Guarantee Fund a declaration certifying the reduction in the interest rate applied on the guaranteed loan, as a result of granting of the guarantee;
- The fee for not finalising the financial transactions is not due;
- Repeal of the limitations to the operations of the direct guarantee existing in some Regions (Tuscany, Friuli Venezia Giulia, Marche, Abruzzo).
For further information on all updates of the operations of the Guarantee Fund introduced by art. 13 of the Law Decree no. 23 of 8 April 2020 (Liquidity Decree) – as converted by Law no. 40 of 5 June 2020, published in Official Gazette no. 143 of 6 June 2020 – please refer to the Law itself.
In light of the changes introduced by the Liquidity Decree on the operations of the Guarantee Fund in force until 31 December 2020, Banca Ifis proposes the following finance transactions supported by the guarantee of the Guarantee Fund.