Funding has been essential for businesses and the self-employed last year. 98% of the funding provided in the form of ICO loans went to small and medium-sized businesses and the self-employed. They are the ones who have suffered the most from the economic crisis linked to the coronavirus.
More specifically, the bank injected 114,191 million in financing with the approval of the ICO. The data correspond to information compiled by the Ministry of Economic Affairs up to December 28, 2020.
In this sense, the funds provided were channeled through 940,130 financing operations. Guarantees have been granted for an amount of 86,737 million euros. In total, the funds mobilized amount to 114,191 million euros.
To facilitate the financing of businesses and self-employed people affected by the crisis, the government has extended the period for granting ICO guarantees until June 30, 2021. In addition, it has extended the repayment of the loan for an additional three years until a maximum of eight years. . As for the grace period, it went from the current 12 months to 24 months.
To apply for financing, neither companies nor the self-employed can find themselves bankrupt or in default of payment. And they must make the request by contacting any financial institution subscribed to the ICO.
The guarantees granted to SMEs and the self-employed after the pandemic aim to make it easier for them to maintain their jobs and reduce the economic repercussions of Covid-19. In this sense, they also intend to cover new loans and other financing arrangements, as well as renewals that financial entities have granted to these companies.
And it is that SMEs and the self-employed have requested loans to pay wages, pay supplier bills pending settlement, rental of premises, offices and facilities, other procurement expenses or ‘other liquidity needs.
Finally, one of the requirements that these companies have had is that secured funding cannot be used to pay dividends or for any other purpose than one of the established ones.
The entrepreneurship club