COVID-19 First part of ICO Guarantee Lines

Dear clients,

With the aim of keeping you permanently informed about those news that may be of your interest, we would like to give notice that yesterday, at the meeting of the Council of Ministers, the characteristics of the first part of the ICO guarantee lines for companies and self-employed affected by the economic impact  of COVID-19 were approved. These characteristics are detailed in a Resolution published in the Official State Gazette today.

This first line of guarantees is called ICO COVID-19 loans and amounts to a total of 20,000 million euros.

This way, the Government of Spain will guarantee the loans that are requested in order to be able to cope with the possible economic damages caused by the incursion of COVID-19, such as payment of wages, invoices, need for working capital or other liquidity needs, including those derived from financial or tax obligations’ maturities.

It is important to mention that the Government guarantees the financial operation, by providing security to the bank entity, although, as we have advanced in previous communications, the requirements and conditions related to the granting of such lines of credit will correspond to each bank institution.

These guarantees will have a retroactive nature, with effect from March 18, 2020, -the date of entry into force of the Royal Decree-Law 8/2020-, of March 17, and will be valid for the term granted by the financial institution and up to a maximum of 5 years.

The aid is intended for small and medium-sized companies (PYMES) and self-employed, that is:

  • Medium-sized companies with less than 250 workers and whose annual turnover does not exceed 50 million Euros or whose annual balance sheet does not exceed 43 million Euros.
  • Small companies with less than 50 workers and whose annual turnover or annual balance sheet does not exceed 10 million Euros.
  • Micro-companies with less than 10 people and whose annual turnover or annual balance sheet does not exceed 2 million Euros.

In any case, each bank entity will have to determine the interest rates for the granting of these credit lines, as well as the requirements, conditions and documentation to be provided, in order to value the transaction.

Companies that are registered as a defaulting company at the Bank of Spain Central Credit Register (CIRBE, as per its Spanish acronym) as of December 31, 2019 will not be able to access to this type of aid. Likewise, those entities or entrepreneurs that are facing bankruptcy proceedings.

The maximum period for applying for this first tranche of aid will be until September 30, 2020.

As it has been published in the press, it is foreseeable that this first tranche of financial aid will be succeeded by others, so we will be awaiting any news in this regard.

In order to move towards personalized solutions for you at this time, our firm has already contacted the main banking entities in order to obtain the detailed information that each one requires so we are able to assist you in the application and processing of financing lines.

Kind regards,


Partner of ETL GLOBAL