ICO Lines are a financing initiative through which the Official Credit Institute provides funds, with banks as intermediaries, for companies and self-employed workers.
But after the outbreak of the crisis, many companies have been forced to request this aid.
The ICO (Official Credit Institute) has lines of financing for activities and investment projects for self-employed workers and companies to boost their business. Commercial georgia email list and international credits or SGR guarantees are some of the coverages that this entity offers.
In this context, whether a company is not making progress or needs funding for new activities, it can benefit from this aid, as can all entrepreneurs and brave people who are entering the international market.
However, after the outbreak of the coronavirus situation, the Government approved, by Royal Decree-Law 8/2020 of March 17, in its article 29, an extraordinary State Guarantee Line of up to 100,000 million euros for companies and professionals in trouble. The objective is clear: to facilitate the maintenance of employment and alleviate the economic effects for companies.
Specifically, SMEs and self-employed workers , the biggest losers of the crisis, are the ones to whom 75% of this volume of financing is being directed.
But who manages these guarantees? Does your company meet the requirements to apply for the loan? How can you apply for it? How are the sections of this line distributed? In this article we give you all the answers.
Start of marked textShare! To access the ICO loan you must go to your bank and request it.End of marked text
Who manages these ICO loans?
The guarantees are managed by the ICO through banks that grant loans to companies and self-employed workers with liquidity problems .
Companies and professionals will therefore be able to access these loans through their financial institutions, formalising new financing operations or renewing existing ones.
Among the financial institutions that operate in this line are credit institutions, electronic money institutions or payment institutions, which must be registered and supervised by the Bank of Spain and have signed a framework contract with ICO to participate in the Guarantee Line .
Financial institutions can request the guarantee for loans and operations signed with self-employed workers and companies from March 18, 2020 to September 30, 2020.
How do I apply for an ICO loan?
The ICO Lines are integrated into the commercial network of the entities , which facilitates access to them for companies and self-employed workers from any region.
They are processed directly in the offices of the main banks and credit unions in Spain that collaborate with the ICO , such as those mentioned in the previous point.
Sage
Micro-enterprises and self-employed workers have been some of the biggest victims of COVID-19.
Who can benefit from these ICO grants and loans?
ICO loans are designed so that 75% of the financing is allocated to professionals and companies with fewer than 10 employees, the biggest victims of the crisis.
However, all companies and self-employed persons operating in Spain and whose activity falls within a CNAE in the tourism sector and related activities can apply for this line of guarantees.
Requirements to apply for these ICO grants and loans
Not all companies will be eligible for these grants. In addition, micro-SMEs, which represent 94% of the Spanish business sector, are having difficulty accessing these loans because they have a tight profit margin and few resources.
Likewise, having an outstanding debt does not help either, since being listed as a defaulter is a reason for exclusion from accessing these funds.