The Guarantee Fund

The Guarantee Fund (Law 662/96) is a public guarantee created by the Ministry of Economic Development (MISE), the purpose of which is to facilitate access to credit for businesses, replacing or accompanying guarantees of another nature and reducing the risk of the financing party on the guaranteed amount.

Apart from in the case of legislative exceptions, and in accordance with the ordinary rules, the Guarantee Fund guarantees up to a maximum amount of EUR 2,500,000 for companies that meet the subjective and objective requirements of the Operational Provisions governing the guarantee.

In the ordinary rules of the Guarantee Fund, the percentage of the guarantee granted by the Guarantee Fund for individual loans varies according to the creditworthiness rating (between 1 and 5), attributed to the individual company by the valuation model referred to in Article 3 of the Ministerial Decree of 29 September 2015 and the Ministerial Decree of 7 December 2016 governed by the Operational Provisions, the type and duration of the guaranteed financial transaction or the type of company, as reported in the Annex.

Transitional system of the Guarantee Fund until 31 December 2022

Law no. 234 of 30 December 2021 (Budget Law 2022) and Decree Law no. 50 of 17 May 2022, as converted by Law no.91 of 5 July 2022 (Aid Decree), envisages the application of a transitional system, valid until 31 December 2022. This transitional system was implemented by the Guarantee Fund with Circulars no. 4 and no. 6 of 2022.

Recipients

Micro, small and medium-sized enterprises registered with the Register of Companies belonging to different production sectors with registered office in Italy. Enterprises in these sectors are not eligible:

  • Financial and insurance activities (Ateco 64-65);
  • Public administration and defence (Ateco 84);
  • Activities of households (Ateco 97 e 98);
  • Organisations and bodies outside the national borders (Ateco 99).

Key changes

Budget Law 2022 introduced the following main exceptions related to the operations of the Guarantee Fund, to remain in force until 31 December 2022:

  • Maximum guaranteed amount per company raised to EUR 5 million
  • eligibility of companies with a creditworthiness rating (hereinafter also referred to as “rating”) of 5;
  • confirmation of the 80% direct guarantee for loans with investment purposes regardless of rating;
  • raising the direct guarantee to 80% for loans granted for needs other than support for the implementation of investments, including factoring, for companies with a rating of 3, 4 or 5;
  • raising the direct guarantee to 60% for loans granted for needs other than support for the implementation of investments, including factoring, for companies with a rating of 1 or 2;

The ​​Aid Decree​ – in view of the liquidity needs directly deriving from the interruption of supply chains or from the increase in the price of raw materials and other inputs due to application of the restrictive economic measures adopted in response to Russia’s aggression against Ukraine, including the sanctions imposed by the European Union and its international partners and the countermeasures adopted by the Russian Federation – introduced the following main exceptions in relation to the operations of the Guarantee Fund. These exceptions are pursuant to “Aid in the form of loan guarantees” – Section 2.2 of the Temporary Crisis Framework to support the economy in the context of Russia’s invasion of Ukraine (hereinafter referred to as the “Temporary Crisis Framework” or “TCF”).

The operations of the TCF were implemented by the Guarantee Fund with Circular no. 6 of 2022, which provides for the following system which is operational, following the authorisation granted by the European Commission with communication C (2022) 5607 of 29 July 2022, from 30 August 2022 to 31 December 2022.

  • Maximum guaranteed amount per company of EUR 5 million, for a maximum amount of the total of the financial transactions facilitated pursuant to points 2.2 and 2.3 of the TCF not exceeding the greater of:
    • 15% of the average total annual turnover in Italy for the last three years (if the company started its operations after 31 December 2019, reference must be made to the average total annual turnover of previous years);
    • 50% of the costs incurred for energy in the 12 months preceding the month of the request for a loan;
    • the liquidity needs of the final beneficiary in the following 12 months, if the beneficiary has experienced interruption of the supply chains or a greatly increased cost of energy, raw materials and/or semi-finished products as a result of the conflict, or has suffered a sharp decrease in turnover due to high exposure in those markets, has pending payments from Russia or Ukraine, or has recorded an increase in costs for cybersecurity. It is also specified that this liquidity need must not have been covered by the aid measures provided for in the temporary framework for State aid introduced following the COVID-19 pandemic;
  • Direct guarantee of:
    • 80% for the types of final beneficiary and financial operation for which the rating does not apply (start-ups, innovative start-ups and certified incubators, microcredit, reduced amount);
    • 80% for loans granted for investment;
    • 80% for loans granted for needs other than support for the implementation of investments, for beneficiary companies with a rating of 3, 4 or 5;
    • 60% for loans granted for needs other than support for the implementation of investments, for beneficiary companies with a rating of 1 or 2;
    • 90% for loans aimed at achieving objectives for the efficiency or diversification of energy production or consumption, such as, by way of example, those aimed at meeting energy needs with energy from renewable sources, investing in energy efficiency measures that reduce the energy consumption absorbed by economic production, making investments to reduce or diversify the consumption of natural gas or improving the resilience of business processes compared to exceptional fluctuations in prices on electricity markets;
  • Free guarantee for loans with a 90% guarantee and for loans granted to companies in Italy operating in one or more of the sectors or subsectors particularly affected by the consequences of Russia’s aggression against Ukraine, indicated at the following link: https://eur-lex.europa.eu/legal-content/IT/TXT/PDF/?uri=CELEX:52022XC0324(10)&from=IT.

The guarantee of the Guarantee Fund with the above-mentioned requirements laid down in the TCF shall not apply to companies subject to sanctions adopted by the European Union, including those specifically listed in the measures imposing such sanctions, those owned or controlled by persons, entities or bodies subject to sanctions adopted by the European Union and those operating in the industrial sectors subject to sanctions adopted by the European Union, insofar as the granting of the guarantee undermines the objectives of the sanctions in question.

For further details of all the temporary derogations on the operations of the Guarantee Fund introduced, please refer to the following Laws and Circulars:

  • 1, paragraph 55, of Law no. 234 of 30 December 2021 (Budget Law 2022);
  • 16 of Law Decree no. 50 of 17 May 2022, as converted by Law no. 50 of 15 July 2022, published in the Official Gazette of 16 July 2022 (Aid Decree);
  • Circular of the Guarantee Fund no. 4 of 24 May 2022;
  • Circular of the Guarantee Fund no. 6 of 3 August 2022.
In light of the changes introduced to the operations of the Guarantee Fund by the Budget Law, the Aid Decree and Circulars no. 4 and 6 of the Guarantee Fund, Banca Ifis proposes the following loan transactions supported by the guarantee of the Guarantee Fund.

Loans guaranteed by the Guarantee Fund

System in force until 31 December 2022

  • Amount to be determined according to corporate needs, subject to the Bank’s assessment and the maximum amount of loans guaranteed by the Guarantee Fund for each company, equal to € 5,000,000. With regard to loans requested under the TCF, the amount of the financial transaction, added to the total amount of any other financial transactions facilitated under Sections 2.2 and 2.3 of the TCF, may not be higher, alternatively:
    • 15% of the average total annual turnover in Italy for the last three years (if the company started its operations after 31 December 2019, reference must be made to the average total annual turnover of previous years);
    • 50% of the costs incurred for energy in the 12 months preceding the month of the request for a loan;
    • the liquidity needs of the final beneficiary in the following 12 months, if the beneficiary has experienced interruption of the supply chains or a greatly increased cost of energy, raw materials and/or semi-finished products as a result of the conflict, or has suffered a sharp decrease in turnover due to high exposure in those markets, has pending payments from Russia or Ukraine, or has recorded an increase in costs for cybersecurity. It is also specified that this liquidity need must not have been covered by the aid measures provided for in the temporary framework for State aid introduced following the COVID-19 pandemic;
  • Amount guaranteed by the Guarantee Fund:
    • 80% for loans with investment purposes regardless of rating;
    • 80% for loans granted for needs other than support for the implementation of investments (e.g. liquidity for stock purchases, payment of suppliers or personnel expenses), for companies with a rating of 3, 4 or 5;
    • 60% for loans granted for needs other than support for the implementation of investments (e.g. liquidity for stock purchases, payment of suppliers or personnel expenses), for companies with a rating of 1 or 2;
    • only for loans requested under the TCF: 90% for loans aimed at achieving objectives for the efficiency or diversification of energy production or consumption, such as, by way of example, those aimed at meeting energy needs with energy from renewable sources, investing in energy efficiency measures that reduce the energy consumption absorbed by economic production, making investments to reduce or diversify the consumption of natural gas or improving the resilience of business processes compared to exceptional fluctuations in prices on electricity markets;
  • Maximum duration 96 months;
  • Grace period up to 24 months.

 

As a general rule, a fee will need to be paid to the Fund for use of the guarantee, as specified in article 2, paragraph 100, letter a), of Law no. 662 of 23 December 1996. It is granted, instead, free of charge, for the exemption cases provided for by the Operational Provisions (e.g. companies located in the south of Italy, women’s enterprises, road haulage companies) and, pursuant to the Aid Decree, for companies, located in Italy, operating in one or more of the sectors or subsectors particularly affected by the consequences of Russia’s aggression against Ukraine indicated at the following link: https://eur-lex.europa.eu/legal-content/IT/TXT/PDF/?uri=CELEX:52022XC0324(10)&from=IT, as well as for financing guaranteed at 90% aimed at achieving objectives for the efficiency or diversification of energy production or consumption.

In the event of non-performance of the loan for reasons attributable to the Customer, following a resolution of approval by the Management Board of the Guarantee Fund, the Customer is required to pay a fee of EUR 300.00.

These conditions partially derogate from provisions in the Information Sheet on Guaranteed Loans, Puglia Sviluppo Guaranteed Loans and Loans Guaranteed with EIB funding and Loans Guaranteed with CDP/EIB funding and Factoring (Purchase and management of an enterprise’s account receivables) following the provisions introduced by the Budget Law 2022 and the Aid Decree.

Corporate customers wanting to learn more or request further information should contact their branch Manager; Non customers should contact the Local Branch or call the Direct Line on 800 712 433.

Guaranteed Leases with the Guarantee Fund

System in force until 31 December 2022

  • Maximum amount of the loan of EUR 5 million. With regard to loans requested under the TCF, the amount of the financial transaction, added to the total amount of any other financial transactions facilitated under Sections 2.2 and 2.3 of the TCF, may not be higher, alternatively:
    • 15% of the average total annual turnover in Italy for the last three years (if the company started its operations after 31 December 2019, reference must be made to the average total annual turnover of previous years);
    • 50% of the costs incurred for energy in the 12 months preceding the month of the request for a loan;
    • the liquidity needs of the final beneficiary in the following 12 months, if the beneficiary has experienced interruption of the supply chains or a greatly increased cost of energy, raw materials and/or semi-finished products as a result of the conflict, or has suffered a sharp decrease in turnover due to high exposure in those markets, has pending payments from Russia or Ukraine, or has recorded an increase in costs for cybersecurity. It is also specified that this liquidity need must not have been covered by the aid measures provided for in the temporary framework for State aid introduced following the COVID-19 pandemic;
  • Amount guaranteed by the Guarantee Fund:
    • 80% for loans with investment purposes regardless of rating;
    • 80% for the types of final beneficiary and financial operation for which the rating does not apply (innovative start-ups and certified incubators, microcredit, reduced amount);
    • only for loans requested under the TCF: 90% of the amount financed for loans aimed at achieving objectives for the efficiency or diversification of energy production or consumption, such as, by way of example, those aimed at meeting energy needs with energy from renewable sources, investing in energy efficiency measures that reduce the energy consumption absorbed by economic production, making investments to reduce or diversify the consumption of natural gas or improving the resilience of business processes compared to exceptional fluctuations in prices on electricity markets;
  • duration up to a maximum of 72 months;
  • Types of asset financed: capital goods, semi-trailers, trailers, industrial vehicles;
  • Deadline of 9 months for delivery of the asset/signing of the delivery report (instead of 6 months), which produces the effects of the date for granting the loan;
  • Administrative management costs of € 500.00 (instead of € 1000.00).

As a general rule, a fee will need to be paid to the Fund for use of the guarantee, as specified in article 2, paragraph 100, letter a), of Law no. 662 of 23 December 1996. It is granted, instead, free of charge, for the exemption cases provided for by the Operational Provisions (e.g. companies located in the south of Italy, women’s enterprises, road haulage companies) and, pursuant to the Aid Decree, for companies, located in Italy, operating in one or more of the sectors or subsectors particularly affected by the consequences of Russia’s aggression against Ukraine indicated at the following link: https://eur-lex.europa.eu/legal-content/IT/TXT/PDF/?uri=CELEX:52022XC0324(10)&from=IT, as well as for financing guaranteed at 90% aimed at achieving objectives for the efficiency or diversification of energy production or consumption

In the event of non-performance of the loan for reasons attributable to the Customer, following a resolution of approval by the Management Board of the Guarantee Fund, the Customer is required to pay a fee of EUR 300.00.

These conditions partially derogate from the provisions in the Information Sheet on Vehicle Leases and Equipment Leases following provisions introduced by the Budget Law 2022 and Aid Decree.

To access the Guarantee Fund, it is necessary to send the leasing company the application form (Annex 4) published by the Ministry of Economic Development at the following link https://www.fondidigaranzia.it/normativa-e-modulistica/modulistica/ with a certain date. The application form must be signed by the legal representative of the company and be completed in full.

For further information, contact your local branch or call the Direct Line at 800 555 078.