ICO

On May 25, the Spanish government approved the sixth tranche of the loan Official Credit Institution (ICO), a new credit line with a total amount of 15,000 million euros intended mainly for self-employed people and small businesses. In fact, 10,000 million of this sum will be awarded exclusively to the self-employed and SMEs, while the remaining 5,000 million euros will go to large companies. Applications can be submitted until December 1, 2021.

The new credit tranche has the same features and granting conditions as the previous credits, but contains a number of innovations related to the repayment of the credits. The ICO’s sixth line of credit approved improvements and grace periods for debt repayment. In this way, the professional beneficiaries of this new portion of the ICO loans will have the opportunity to delay the period in which only the derived interest is paid up to ten years. Out of CE advice You tell us the most important requirements for access.

The requirements for the credit line

As announced by the ICO, only all sectors based in Spain affected by the COVID-19 pandemic, as well as companies and self-employed people who meet the following requirements can benefit from the credit lines:

  • According to the Bank of Spain Central Risk Information Center (CIRBE) documentation, not in default as of December 31, 2019.
  • As of March 17, 2020, not to participate in any bankruptcy proceedings, either because an application for declaration of bankruptcy has been made or for the reasons described in Article 2.4 of Law 22/2003, of July 9, so that the bankruptcy situation has become at the request of its creditors.
  • Prove that they were not in a crisis situation as of December 31, 2019 according to the established criteria to prove that the drop in income is due to the economic loss caused by the Covid-19 pandemic.
  • On the other hand, the loans and deals must have been formalized or decided to be extended after March 18, 2020, and the collateralised financing must not be used to repay or prepay existing debt.

When do you have to return it?

The Ministry of Finance has announced the extension of the loan repayment term to up to 10 years, increasing the previous maximum by 2 years. Likewise, the grace periods have been extended, which vary according to the terms that the freelancer achieves in negotiations with his bank.

Applications until October 15th

The new deadline for self-employed people to extend the grace period and amortize their Official Credit Institute (ICO) guaranteed loan is until October 15. With the recent extension of the terms of the loans, the government has set this new term for the self-employed to apply for the extension.

The application period expired in mid-May, but was extended by a further five months after the last ministerial meeting. For small and medium-sized companies, this measure represents a relief that allows them to refuel with oxygen to alleviate their economic situation, and companies such as IDF All Financing or CE Consulting are working on their processing to offer their customers more comfort and security .

More information on grants and subsidies can be found here: https://www.emprendedores.es/gestion/fondos-europeos-pymes/

Money for SMEs and Freelancers, Funding, ICO, ICO lines