Decree Law no. 23 of 8 April 2020 (Liquidity Decree) – as converted by Law no. 40 of 5 June 2020, published in the Official Gazette no. 143 of 6 June 2020, – introduced the following main novelties related to the Guarantee Fund operations, to remain in force, following the extension established by Budget Law 2021, until 30 June 2021:
- Free Guarantee;
- Maximum guaranteed amount per company raised to 5 million Euro;
- Extension of the Fund guarantee to companies with a number of employees not exceeding 499 (Mid Caps). Companies with a number of employees no lower than 250 and not exceeding 499 will be eligible for the Guarantee Fund until 28 February 2021;
- 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, alternatively than:
- 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 that do not have the above-indicated duration and amount, 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 180 months, following the amendment introduced by the Budget Law 2021 (the maximum duration foreseen by the Liquidity Decree, following conversion into law, was 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 that requirements are fulfilled, without waiting for the final outcome of the investigation by the Fund manager.
Budget Law 2021 extended those loans to companies with the following ATECO 2007 codes:
- 19.20 Financial adviser and mediation activities
- 19.21 Financial Advisers
- 19.22 Agents, mediators and purveyors of financial products
- 21.00 Independent insurance experts and liquidators
The companies obtaining these loans, pursuant to art. 13, par. 1, letter m) of the Liquidity Decree as converted (indicating a maximum limit of 120 months) may apply, pursuant to art. 1 paragraph 217 of Budget Law 2021, for an extension of duration to maximum 180 months, merely adjusting the interest rate applied, related to the longer loan duration.
- Eligibility of the direct Fund guarantee, for 80%, also for loans needed to renegotiate the Company debt, as long as the new loans establish allocation to the Company of additional credit equal to at least 25% of the existing debt amount granted for the loan being renegotiated. 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 the guarantee being granted;
- No fee is due for not finalising the financial transactions;
- Repeal of the limits to the operations of the direct guarantee existing in some Regions (Tuscany, Friuli Venezia Giulia, Marche, Abruzzo).
For further analysis of all novelties to Guarantee Fund operations introduced:
- by art. 13 of Decree Law no. 23 of 8 April 2020 (Liquidity Decree) – as converted by Law no. 40 of 5June 2020, published in the Official Gazette no. 143 of 6 June 2020
- by art. 1 paragraphs 244 and 245, 213-218 of Law no. 178 of 30 December 2020, published in Official Gazette no. 322 of 30 December 2020
please consult the laws themselves.
In light of the changes introduced by the Liquidity Decree on the operations of the Guarantee Fund, as extended by Budget Law 2021 until 30 June 2021, Banca Ifis proposes the following loan transactions supported by the guarantee of the Guarantee Fund.