Finacining in times of COVID-19

From Monday 6 April 2020, businesses can access the new financing facility guaranteed by the ICO (Instituto de Crédito Oficial). This measure activates the first 20-billion-euro tranche of the 100-billion-euro “Guarantee Line”, which the government has approved to deal with the lack of liquidity caused by COVID-19.

  • How does it work?

Businesses should contact the financial institutions that have signed a Guarantee Line collaboration agreement with the ICO. The financial institution will make a decision on whether to grant the corresponding funding to the customer, in accordance with its internal procedures and policies on granting and risks.


  • Who is eligible?

Businesses and the self-employed that meet the following requirements:

  • They are not included on the list of non-performing loans in the Bank of Spain’s Central Credit Register (CIRBE) as of 31 December 2019.
  • They are not subject to any insolvency proceedings as of 17 March 2020.

Up to 10 billion euros for renewals and new loans granted to the self-employed and SMEs (“Autónomos y PYMES”).

Up to 10 billion euros for renewals and new loans granted to non-SMEs (Large enterprises).


  • How much is guaranteed by the ICO?

For the self-employed and SMEs, the guarantee covers 80% of the principal amount of both new financing transactions and renewals.

For large enterprises, the guarantee covers 70% for new lending transactions, and 60% for renewals.

  • What is the time frame?

The financial institutions can request the guarantee for loans and transactions entered into with the self-employed and companies that are formalised or renewed between 18 March 2020 and 30 September 2020.

The term of the issued guarantee will coincide with the term of the transaction, up to a maximum of five years.

  • What can it be used for?

To maintain employment and mitigate the economic effects of COVID-19, with the aim of covering new loans and other forms of funding, and renewals granted by financial institutions to companies and the self-employed to meet financing needs such as:

  • Paying wages
  • Supplier invoices pending payment
  • Rent for premises, offices, and installations
  • Utility bills
  • Working capital needs
  • Other liquidity needs, including those deriving from maturity of financial or tax obligations

The Guarantee Line may not be used to finance loan consolidations or restructuring, or for the cancellation or early repayment of pre-existing debts.

The team at Bové Montero y Asociados continues to work remotely and is at your service to clarify any doubts you may have in this regard, or support you in any way necessary.

François Blin, Partner
Madrid office

Josep Serra, Partner
Barcelona office