Covid-19 – Loan guarantees | Briefings

Local authorities can adopt aid measures in favor of companies, in the form of loan guarantees…

Local authorities can adopt support measures for businesses, in the form of loan guarantees for investments and for working capital. The guarantees, to be granted by December 31, 2020, are issued to companies directly or through banks or other entities authorized to lend money in Italy.

For each individual loan, the fee on the guarantee is fixed at a level which will gradually increase with the increase in the duration of the loan which is guaranteed, as indicated in point 25, letter a) of Communication C of the European Commission (2020 ) 1863 final (the “Communication”).

The Italian rules are set out in article 55 of the relaunch decree and reflect those of the communication.


  • For SMEs, the commission for a 1-year loan is 25 basis points; for a loan of 2 to 3 years is 50 basis points and for a loan of 4 to 6 years is 100 basis points.
  • For large companies, the fee for a 1 year loan is 50 basis points, for a 2-3 year loan is 100 basis points and for a 4-6 year loan is 200 basis points.

The amount of the loan must not exceed:

  1. twice the beneficiary’s annual payroll (including certain residual items) for 2019, or for the last year available. For companies created on or after January 1, 2019, the maximum loan must not exceed the estimated annual payroll for the first two years of operation; Where
  2. 25% of the beneficiary’s total turnover in 2019.

The guarantee is six years, while the public guarantee must not exceed:

  1. 90% of the principal of the loan when the losses are borne proportionally and under the same conditions, by the credit institution and the State; Where
  2. 35% of the principal of the loan, the losses being attributed first to the State and only then to the credit institutions (as first loss guarantee).

When the amount of the loan decreases over time, for example out of repayment, the guaranteed amount decreases proportionally.

Local authorities, in this context, include Regions, other territorial entities and Chambers of Commerce.

More precise rules are set to avoid cumulative measures and on pre-existing loans.

BSVA Studio Legale Associato (ref: Lantelme), Milan, Italy, May 27, 2020

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