COVID-19: information on the ICO Credit Line

Now more than ever, we want to help companies and freelancers cope with the economic effects of COVID-19. For this reason, at Banco Sabadell we offer you financing linked to lines of credit from Spain's Official Credit Institute, the ICO, in order to meet the following needs of your business:

• Payroll, rents or other fixed expenses.
• Payments to suppliers.
• Past-due payments of financing and tax obligations.
• New investment projects such as the procurement of assets, capital goods, machinery, processes, materials, etc.; the expansion, adaptation, renovation or maintenance of capacities, installations, equipment, processes, etc.; and/or the development or resumption of the activity.
• All current and capital expenses which may result from such investments (payments of invoices, past due financial or tax obligations, payroll, etc.)

Who can request it?

Royal Decree-Lawy 8/2020, of 17 March and Royal Decree-Law 25/2020, of 3 July, as extended pursuant to Royal Decree-Law 34/2020 and Royal Decree-Law 5/2021 and that Royal Decree-Law 27/2021, of 23 November, which extends the deadline for granting the guarantees released in Royal Decree-Laws 8/2020 and 25/2020 until 1 June 2022.

Puede solicitar la Línea ICO Avales Inversión COVID-19 cualquier empresa o autónomo con domicilio social en España. Es una línea dirigida a todos los sectores de la actividad, ya sean empresas públicas o privadas que han visto afectada su actividad económica por los efectos del COVID-19.

Any company or self-employed person with a registered office in Spain can apply for the ICO COVID-19 Investment Guarantee Facility. This is a line of credit aimed at all sectors of activity, both public and private companies whose economic activity has been affected by COVID-19.

Conditions of the ICO COVID-19 Credit Line

Amounts of up to a maximum of €2.3 million for freelancers and companies, in one or more operations: the specific provisions of the Regulation of the European Union on minimum aid apply.

Amounts over €2.3 million for SMEs and companies that do not meet SME status, in one or more operations: the conditions and limits provided in the Temporary Framework of State Aid of the European Commission apply.

Terms and guarantee

The term of the operation is up to 10 years, with the possibility of up to a 1-year grace period. The guarantee coverage is:

• For Freelancers and SMEs up to 80% of the operation.
• For companies that do not qualify as SMEs up to 70% for new transactions.

Relevant dates

• Closure of simulator for new applications: 18/04/2022. 18/04 is the last day to apply for a new ICO Investment transaction.
• Deadline for signing before a notary: 20/05/2022. Remember that, in order to sign, it is necessary to have previously compiled all the compulsory documentation.

Both dates are established due to the obligation to send the documentation for the granting of aid to ICO before 1/06/2022.

How to apply

Contact your branch. A manager will help you with all the request procedures.

On this page you will find more information on the Royal Decree Laws linked to the ICO lines of credit, so that you can view all the details.

With SimplifICO we help you access ICO credit lines For the self-employed and micro-businesses with an annual turnover of up to €900,000.

Find out more

Now more than ever, we want to help companies and freelancers commit to the growth of their business.

In order to promote and support the granting of new financing lines, Banco Sabadell offers financing linked to the ICO credit lines, so that you can carry out new investments in Spain aimed at adapting, expanding or renovating your production and service capacities or the resumption or reopening of your activity. With the ICO COVID-19 Investment Guarantee Facility, it is possible to finance:

• New investment projects such as the acquisition of assets, capital goods, machinery, processes, materials, etc.; the expansion, adaptation, renovation or maintenance of capacities, installations, equipment, processes, etc.; and/or the development or resumption of the activity.
• All current and capital expenditure which may result from such investments (payments of invoices, maturities for financial or tax obligations, salaries...).

Who can request it?

According to the Royal Decree Law 25/2020, df 3 July, any company or self-employed person with a registered office in Spain can apply for the ICO COVID-19 Investment Guarantee Facility. It is a credit line aimed at all sectors of activity, whether they are public or private companies.

In the Royal Decree Law 25/2020, of 3 July, a 40-billion euro Guarantee Facility was approved to guarantee support financing granted to companies and the self-employed to meet their liquidity needs and, in particular, those arising from new investments.

The Council of Ministers' resolution of 28 July establishes the terms and conditions of the first section of the Credit Line for an amount of 8 billion euros distributed in two sub-tranches as follows:

• SMEs and freelancers: 5 billion euros
• Non-SME companies: 3 billion euros

Conditions of the ICO COVID-19 Credit Line

Amounts of up to 1.5 million euros for the self-employed and businesses, in one or more transactions: the specific provisions of the European Union Regulation on de minimis aid will apply.

Amounts exceeding 1.5 million euros for SMEs and companies that do not qualify as SMEs, in one or more transactions: the conditions and limits laid down in the European Commission's Temporary Framework for State Aid will apply.

Terms and guarantee

The term of the transaction is up to 8 years, with the possibility of a 2-years grace period. The coverage of the guarantee is:

• For self-employed and SMEs: up to 80% of the transaction.
• For companies that do not qualify as SMEs: up to 70% for new transactions and 60% for renovations.

How to apply

Please contact your branch. A manager will help you with all the paperwork to submit the application.

For more information, see the Royal Decree Law 25/2020 of 3 July, on urgent and extraordinary measures to deal with the economic and social impact of COVID-19.

For more information, see the ouncil of Ministers resolution of 28 July dwhere the terms and conditions of the first section of the Guarantee Facility are established.