Swiss Banks Extending Loans At Low-Interest Rate For SBAs
The current developments as a result of the coronavirus pose a variety of challenges for the economy. Small and medium-sized enterprises (SMEs) are especially affected. The banks stand by their responsibility as credit providers to the economy.
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How To Get A Small Business Loan From The COVID-19 Stimulus Bill
How do banks, the federal government and the cantons support affected SMEs?
Even in these challenging times, banks are fully committed to their responsibility as credit providers to the economy. You support affected companies with liquidity bottlenecks with various measures. The banks are in close contact with both the companies concerned and the authorities and are constantly analyzing the situation.
The program announced by the Federal Council to grant loans with solidarity guarantees for small and medium-sized companies (guarantee program) has been in force since March 26, 2020. The Federal Council made a decision to raise the guaranteed volume to CHF 40 billion total on April 3, 2020. The program was developed jointly by the federal government and banks and ensures that the companies concerned have access to loans to bridge corona-related liquidity shortages. The program was initiated by the banks. Banks and businesses will find detailed information on how to participate in the program below in the other questions and answers.
Several cantons also implemented steps. Through this framework, the steps used by different cantonal banking institutions, which offer sums to aid corporate clients, are worth referencing.
Who is the federal and bank loan program aimed at? Which companies can apply for loans?
Swiss SMEs affected receive quick and uncomplicated financial support with the program. This takes the form of loans with solidarity guarantees, which companies can receive from the banks. All companies (sole proprietorships, partnerships, or legit entities) located in Switzerland who are significantly affected (economically) by the coronavirus outbreak that were founded before March 1, 2020 and whose yearly proceeds doesn’t go beyond CHF 500 may apply for a loan Million lies. In addition, no COVID-19 loan application must be made to anyone who has already received benefits under the immediate programs for sports and cultural organizers.
According to the Federal Council, the loan amounts of up to CHF 0.5 million should cover over 90 percent of the companies concerned.
What loans are available?
The program offers two types of loans:
Covid-19 loan: A maximum of CHF 0.5 million per counterparty are easily paid out by the banks and 100 percent guaranteed by the federal government through guarantee organizations. The interest rate is currently 0 percent.
Covid 19 credit plus: More than CHF 0.5 – 20 million are guaranteed by the federal government through guarantee organizations. A prerequisite is a prior examination of the application by the bank. The highest possible amount of the financing firm is equivalent to CHF 20 million for every counterparty. At presemt. the interest rate is at 0.5% on the loan secured by the federal government. In the area of 15% without collateral, the bank-specific conditions apply.
For further inquiries, get in touch with the SBA offices. Many employees are currently working from home and can be reached by phone and email. Committee meetings with the members of the SBA will be held by telephone until further notice.