The self-employed can combine the covid loan and the war loan

The self-employed who requested an ICO loan during the pandemic will be able to combine their credit with another line of guarantees created to be able to face the increase in costs derived from the war between Ukraine and Russia. The president of the Official Credit Institute, José Carlos García de Quevedo, announced in the summer course given by ATA, the possibility of more widely covering your need for financingthanks to the flexibility of both lines.

“A company or a self-employed person, even if they have accessed the ICO line of credit created in March 2020, if they agree with their financial institution, they will be able to benefit from the ICO loan created for the rise in costs due to the war in Ukraine. If you are still within the time frame – that is, your credit has not ended – will be able to accumulate the line of guarantees for the Ukraine War. They are compatible with each other, given that the state loan created for the pandemic was very flexible due to the extreme circumstances that occurred,” García de Quevedo explained.

The president of the ICO highlighted that the economic characteristics of the new line of ICO guarantees due to the Ukrainian conflict “is open to all sectors and it can be requested until next December 1”. As long as – García de Quevedo clarified – “they are not in a delinquent situation, except that they have taken advantage of the loans due to the pandemic.”

The guarantee will guarantee up to 80% of the new loans for operations requested with a maximum guaranteed amount of up to 400,000 euros in general, or 35,000 euros for companies in the primary sector, aquaculture or fishing, in one or more loan operations. In these cases, the guarantee issued will have a validity equal to the term of the loan granted, with a maximum term of 10 years”, specified the president of the ICO.

“For loans of a higher volume, the guarantee may guarantee up to 80% of the amount of the loan for SMEs and the self-employed and up to 70% for other companies, although the total amount of the loan may not be greater than 15% of the total average annual business volume of the beneficiary during the last three years, or 50% of the energy costs in the twelve months prior to the loan application”, stated García de Quevedo.

For all these operations, the self-employed will have a period of initial grace period of 12 months and a repayment period of eight years. Finally, the ICO recalls that “Financial Entities must apply the best banking uses and practices for the benefit of their clients and may not condition the approval of loans on the contracting by the client of any other service or product”.

The self-employed will be able to request a complementary ICO credit to the Digital Kit to buy computers

During the fourth day of the summer courses for freelancers and entrepreneurs organized by the National Federation of Self-Employed Associations (ATA), at the Rey Juan Carlos University in Madrid, the attendees asked the president of the ICO one of the most frequent doubts among self-employed workers: “Can I buy electronic devices like a computer with the Digital Kit?

The Digital Kit is a non-refundable help to implement only digital solutions in business: marketing, social networks, web pages, etc. The self-employed who want to have a credit to buy a computer or different electronic media for their activity, can count on theto the ICO line that if it finances this type of product”, specified the president of the ICO.

“All self-employed workers who have signed a Digitization Solutions Provision Agreement within any of the calls for aid that publishes within the framework of the Digital Kit Program may apply for this loan,” he added. “They can do it in the credit entities that adhere to this line and the amount will vary depending on the aid that – due to the size of their business – has been granted in the Digital Kit”, he clarified.

“The interest will be fixed or variable, plus the margin established by the bank or financial institution according to the established repayment term. This will be 180 days, 1 or 2 two years with the possibility of a 1-year grace period. Those interested will have until December 31, 2025 to request it”, he concluded.

“The freelancers who asked for an ICO during the pandemic are paying on time”

One of the most outstanding issues by the president of the ICO was that, until now, “the self-employed who will see the grace period of their loans end in July, have paid their credits on time.” In the absence of data for the month of June, “we trust that the delinquency rate will remain at the levels at which it is being maintained, which is contained, according to the levels set by the Bank of Spain,” he said. “Currently delinquency is around 4% and is very low”, he signed.

Garcia de Quevedo pointed out that since November between 60% and 65% of the companies that could have requested an extension of the credit did not do so since “due to the prospects for economic growth, they estimated that they could pay their dues normally.” For this reason, only 35% or 40% of the self-employed and micro-enterprises, beneficiaries of 70% of all ICO loans that have been granted since the pandemic, have requested an extension of the grace period or amortization period.