The companies have already received almost 40 billion guaranteed funding with the ICO Guarantee Line.

May 7, 2020. Spanish companies have already received almost 40 billion euros in guaranteed financing with the Guarantee Line that, amounting to up to 100 billion euros, was approved by the Government. In the first month of operation (data as of 6 May) 298,971 financing operations have been approved, with an approved amount of 30,192 million euros.

The largest volume of operations and financing is concentrated in SMEs and the self-employed, with 293,387 approved loans, 98% of the total, and an approved amount of 20,873 million euros. This has allowed these companies to receive 26,122 million euros of funding to guarantee their liquidity and cover their circulating needs.

About 80% of the companies that have received funding, and almost 75% of the approved operations, are directly managed by self-employed or are micro-SMEs with less than 10 employees, which shows the capillary nature of the Avales Line.

The largest companies have received 13,599 million euros in financing, through the 5,584 operations endorsed with more than 9,300 million euros.

Ddistribution by autonomous communities and sectors

The extensive commercial network of financial institutions is allowing companies in all Autonomous Communities to receive guaranteed funding with the Guarantee Line.

Catalonia is the community with the highest number of approved operations, with a total of 52,463, which has allowed its companies to receive funding amounting to 6,845 million euros. It is followed by Andalusia, with 46,000 credits and a financing of 4,280 million euros; and the Community of Madrid, with 37,570 operations and 7,836 million financing channeled to its companies.

The sectoral distribution shows that the companies and businesses most affected by COVID-19 are the ones that have made the greatest use of the Guarantee Line. The Tourism, Leisure and Culture sector has obtained funding amounting to 6,102 million euros, through 58,422 operations. It is followed by Consumer Goods and Trade, with 30,086 credits and 2,570.4 million euros of financing and Construction and Infrastructure, with 27,626 operations and 4,111.1 million euros financed.

91.1% of the guarantees requested have been used to guarantee new operations, which, for the most part, 87.6%, are long-term loans, between 4 and 5 years.

Public-Private Partnership Model

The Guarantee Line is intended to guarantee liquidity and meet the needs of businesses and self-employed workers in all sectors of activity to face the economic and social impact of COVID-19.

Credit institutions, credit financial institutions, payment institutions or electronic money institutions are responsible for analyzing and formalizing transactions. So far, a total of 118 financial institutions collaborate with the Official Credit Institute in the management, which makes the Guarantee Line one of the largest and main exponents of public-private collaboration.

Since the approval of the Line by the Council of Ministers on March 18, three sections have been activated. The first, amounting to 20 billion euros, set aside 10 billion euros to guarantee loans for SMEs and the self-employed and the rest for large companies.

The second of 20,000 million, given the great demand and importance given to special support for SMEs and the self-employed, was allocated entirely to these companies. The third, approved at the last Council of Ministers, grants another 10 billion in guarantees for loans from SMEs and self-employed, 10 billion for the operations of larger companies and includes 4 billion in guarantees to guarantee the issuance of promissory notes by non-financial companies in the Alternative Fixed Income Market (MARF) and 500 million to reinforce the guarantees granted by the Spanish Company of Reconsolidation (CERSA), thus increasing the capacity of the Reciprocal Guarantee Societies of the autonomous communities.