Requirements to access the new ICO loans for self-employed workers approved by the Government

The Government approved this Tuesday a new section of ICO loan lines of 15,000 million euros. Specifically, 10,000 euros of this allocation are for the exclusive use of the self-employed and SMEs, the remaining 5,000 million will fall on larger companies; such as María Jesús Montero, spokesperson for the Government and Minister of Finance, during the Council of Ministers.

The influence of the health crisis has been devastating for small businesses, which have been on the verge of bankruptcy and many of them have been forced to close. For this reason, the demand for this line of guarantees has increased considerably.

This sixth tranche of credits from the Official Credit Institute (ICO) was “very necessary after the strong increase in the demand for guaranteed financing that banking entities have experienced in recent weeks. They are necessary to support the activities that are entering the recovery”; Montero stressed.

The deadline to request ICO credits ends on December 1

These new loans can be requested until December 1. However, the professional cannot have unpaid credits before 2020. The guarantee will be up to 80% in the case of the self-employed group and 70% for the rest of the companies. In addition, the Government approved a repayment period of up to 10 years.

Requirements to access these loans

Any freelancer or company domiciled in Spain and affected by covid can request this line of guarantees. However, to access them you must meet a series of requirements:

– It may not appear in a delinquent situation in the information files on asset solvency and credit.

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– It cannot be found in insolvency proceedings, in bankruptcy proceedings.

– Demonstrate that the drop in business turnover is a result of covid.

– This financing cannot be used to carry out previous or subsequent refinancing of other loans with the financial entity.

– Customers who have the status of a large company must have a credit rating of B- or higher.

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