Freelancers and companies receive more than 53.6 billion euros of funding with the guarantee of the ICO Guarantee Line

May 22, 2020. Spanish self-employed workers and companies have received a total of 420,717 loans amounting to 53,610 million euros guaranteed with the Guarantee Line approved by the Government to guarantee liquidity, maintain the productive fabric and guarantee employment.

This Line has an endowment of up to 100,000 million euros. Four tranches have already been activated, amounting to 84.5 billion euros and the amount so far endorsed amounts to 40.747 billion euros, which has allowed funding of more than 53.6 billion euros to be channeled, with data as of May 20.

SMEs and the self-employed continue to concentrate the largest number of approved operations and funding granted, with 412,684, 98% of the total, and an approved amount of 28,614 million euros. This has allowed these companies to receive 35,832 million euros to cover their liquidity and circulating needs.

Seventy-four per cent of the approved operations involve self-employed companies or micro-SMEs with fewer than 10 employees, reflecting the capillary nature of the Avales Line.

The largest companies have received 17,777 million euros in funding, through 8,033 operations backed with 12,133 million euros.

Distribution by autonomous communities and sectors

Eighty-nine per cent of the approved operations supported have been used to secure new loans, most of which are 86.3 per cent in the long term, ranging from four to five years.

Companies in all autonomous communities are receiving guaranteed funding. Catalonia is the community with the highest number of approved operations, with a total of 77,601 approved credits, which have allowed its companies to receive funding amounting to 9,744 million euros. It is followed by Andalusia, with 64,523 credits and a financing of 5,818 million euros; and the Community of Madrid, with 54,011 operations and 10,596 million financing channeled to its companies.

The sectoral distribution shows that companies and businesses in the tourism, leisure and culture sector have received the highest volume of funding, amounting to 8,606 million euros, through 82,324 credits granted. It is followed by the Consumer Goods and Trade sector, with 42,701 credits and 3,444 million euros of financing and Construction and Infrastructure, with 40,411 operations and 5,618 million euros financed.

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 123 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 characteristics of the Guarantee Line on April 5, four tranches have been activated and 80 billion euros have been made available to companies and self-employed to guarantee the financing granted by credit institutions, credit financial institutions, payment institutions and electronic money institutions.

In addition, 4 billion euros have been approved to guarantee the emissions of promissory notes in the Alternative Fixed Income Market (MARF) and 500 million euros to reinforce the reguarantee that CERSA grants to Reciprocal Guarantee Companies.

Of the total volume of resources approved, a total of 60 billion euros in guarantees have been reserved to guarantee the liquidity of self-employed workers and SMEs.

The ICO broadcasts fortnightly through its website (https://www.ico.es/web/ico/informes-seguimiento-linea-avales) Data on the evolution of this line of guarantees, with information by size of beneficiary company, sector of activity and autonomous community.