Info covid

Info covid

Emergency COVID-19

EMERGENCY COVID-19

SUSPENSION OF MORTGAGE REPAYMENTS AND MORATORIUMS ON FINANCING

Decree Law No. 18 of March 17, 2020 (converted into Law No. 27 of April 24, 2020, published in Official Gazette No. 110 of April 29, 2020), also known as the “Cure Italy” Decree, approved economic support measures for families, workers and businesses related to the COVID-19 epidemiological emergency.

Decree Law No. 18 of March 17, 2020

https://www.gazzettaufficiale.it/eli/id/2020/03/17/20G00034/sg

  1. Measures in favor of families, freelancers and the self-employed

It is possible to apply by December 31, 2021 for the suspension of the installment of the mortgage referred to the main home, of an amount not exceeding 400,000 euros, with a contribution from the Solidarity Fund that covers 50% of the interest that accrues during the suspension, according to calculation methods that will be defined by Consap.

Beneficiaries

Individuals: families, self-employed and freelancers, including artisans and traders (persons referred to in Article 2083 of the Civil Code).

Prerequisites for access to the Solidarity Fund and application for moratorium on first home loans

Applications can be made by individuals who are in one of the following conditions:

  • Loss of subordinate and/or parasubordinate employment relationship
  • Suspension from work or reduction of working hours for a period of at least 30 days
  • For freelancers and self-employed workers, including artisans and merchants (persons referred to in Art. 2083 of c. c), who self-certify in accordance with Articles 46 and 47 of Presidential Decree 445/2000 that they have recorded, in a quarter following February 21, 2020 , or in the shorter period of time between the date of application and the aforementioned date, a decrease in turnover, greater than 33% of the ‘last quarter of 2019 as a result of the closure or restriction of their activities operated in implementation of the provisions adopted by the competent authorities for the coronavirus emergency (Art. 54, paragraph 1 letter a)

The request and the duly signed self-certification should be sent by e-mail to [email protected] attaching the appropriate application form published by Consap below.

First home loan installment suspension form for Individuals, Self-employed and Freelancers.

 

Any updates will be published in this same section

Answers to frequently asked questions – FAQ

http://www.mef.gov.it/covid-19/faq.html

II. Measures in favor of Small and Medium Enterprises (SMEs) and Micro Enterprises.

 

Article 16 of Decree-Law No. 73 of May 25, 2021 extended until December 31, 2021 the financial support measures in favor of SMEs, initially provided for in Article 56, paragraph 2 of the so-called “Cura Italia” Decree, which then Article 65 of the so-called “August” Decree (Decree-Law No. 104 of 14/8/2020) had extended to January 31, 2021 and Article 1, paragraph 248 of the Budget Law 2021 (Law No. 178 of 12/30/2020) had further extended until June 30, 2021.

 

The extension operates for companies already eligible for support measures that will apply by June 15, 2021, by submitting a self-certification stating that they have suffered a partial or total reduction in activity as a direct consequence of the spread of the Covid-19 epidemic.

Beneficiaries

Microenterprises and SMEs: Microenterprises and SMEs are defined by European Commission Recommendation No. 2003/361/EC of May 6, 2003, also taking into account associated and affiliated enterprises.

 

Suspension measures

  • Maintenance of revocable credit facilities and loans granted against advances on loans existing as of March 19, 2020 until December 31, 2021 without the possibility of revocation by the Institute.
  • Extension until December 31, 2021 of the maturity of non-instalment loans with contractual maturity by December 31, 2021.
  • Suspension of payment of the full repayment installment of mortgages and other installment loans due by December 31, 2021 until December 31, 2021 itself. The suspension covers only the principal portion of the loans.

The request and self-certification, duly signed, should be sent by e-mail to [email protected].

Any updates will be posted in this same section

Answers to frequently asked questions – FAQ
http://www.mef.gov.it/covid-19/faq.html

CORPORATE LIQUIDITY SUPPORT MEASURES

Decree Law No. 23 of April 8, 2020 (converted with amendments by Law No. 40 of June 5, 2020 published in G.U. No. 143 of June 6, 2020), also known as the “Liquidity Decree,” introduced several measures to facilitate companies’ access to credit. These measures vary according to company size and are valid until December 31, 2021, as stipulated in Article 13 of Decree Law No. 73 of May 25, 2021. Below are the financial solutions reserved for businesses that have relations with Banca Profilo.

Decree Law No. 23 of April 8, 2020

https://www.gazzettaufficiale.it/eli/id/2020/04/08/20G00043/s

I. Guarantee Fund for Small and Medium Enterprises (SMEs).

Companies with fewer than 500 employees and for loans of up to €5 million are eligible for the Central Fund guarantee. The guarantee coverage percentage is 80 percent of the amount of financing requested from the Bank. Guarantees issued by the Central Fund under the “Liquidity Decree” are free of charge.

Measures in favor of medium-sized enterprises with between 250 and 499 employees are issued by the Central Fund until February 28, 2021, as stipulated in Article 1, paragraph 245 of the Budget Law 2021 (Law No.178 of 12/30/2020).

New loans

The coverage percentage of the Central Fund’s direct guarantee is 80% of the amount of the loan requested from the Bank. The amount of each transaction may not alternatively exceed the following thresholds:

  • twice the annual cost of employees in 2019 or for the last available year;
  • 25 percent of 2019 turnover;
  • the liquidity requirement must be related to a project to develop its business and/or strengthen its production capacity.

The maximum term of new financing can increase up to 96 months.

Refinancing

Loans for debt renegotiation operations are eligible for the direct guarantee of the Central Fund, to the extent of 80 percent, provided that they provide – in favor of the beneficiary enterprise – additional credit to the extent of at least 25 percent of the amount of the loan being renegotiated.

Operations in the tourism, hotel and real estate sectors

For real estate investment operations in the tourism, hotel and real estate activities sectors, with a minimum term of 10 years and an amount exceeding 500,000 euros, the guarantee of the Fund may be cumulated with other forms of guarantees acquired on the loans.

II. Italy Guarantee from SACE S.p.A.

In order to ensure the necessary liquidity to companies based in Italy affected by the Covid-19 epidemic, SACE S.p.A. grants its guarantee under the following main conditions:

 

  • the guarantee must be issued by December 31, 2021, to safeguard loans of a duration not exceeding 96 months, with the possibility for enterprises to avail themselves of a pre-amortization of up to 36 months;
  • the beneficiary enterprise must not fall into the category of enterprises in difficulty (within the meaning of EU Regulation No. 651/2014) as of December 31, 2019;
  • the amount of the loan backed by the guarantee does not exceed the greater of the following:
  • 25% of the company’s annual turnover for 2019;
  • twice the enterprise’s personnel costs related to 2019.

After December 31, 2020, SACE S.p.A. may also issue guarantees in relation to:

  • financing intended in part for the renegotiation/consolidation of existing financing. For this purpose, it is required that the loan provides for the disbursement of additional credit in an amount equal to at least 25% of the amount of the loan subject to renegotiation and that the issuance of the guarantee is suitable to result in a lower cost and/or longer duration of the loan compared to the loan subject to renegotiation.
  • assignments of loans, without a guarantee of solvency provided by the assignor (so-called non-recourse assignments), made to banks/financial intermediaries.

In addition, from March 1, 2021 until December 31, 2021, the SACE S.p.A. guarantee is issued:

  • free of charge to medium-sized companies (known as mid caps), i.e., with a number of employees not exceeding 499 (based on the work-unit-years surveyed for the year 2019);
  • up to the coverage of 80 percent of the loan, for a maximum guaranteed amount of up to €5 million, or less taking into account the unreimbursed principal amount of any loans assisted by the SME Guarantee Fund guarantee.

SACE S.p.A.’s guarantee covers:

    • 80% of the loan amount for enterprises with turnover value between 1.5 billion and 5 billion euros or with more than 5,000 employees in Italy;
    • 70% of the amount for enterprises with turnover value of more than 5 billion euros90% of the loan amount for companies with less than 5,000 employees in Italy and turnover value up to 1.5 billion euros, subject to the provisions for mid caps;

There are annual fees payable by enterprises for the issuance of SACE S.p.A. guarantees.

The enterprise that benefits from the guarantee of SACE S.p.A. assumes the commitment that it, as well as any other enterprise that is part of the same group to which the former belongs, will not approve the distribution of dividends in the twelve months following the disbursement of the loan.

 

In addition, (i) the company benefiting from the guarantee assumes the commitment to manage employment levels through labor union agreements and (ii) the financing covered by the guarantee must be intended to support personnel costs, investments or working capital employed in production plants and business activities that are located in Italy, as documented and attested by the legal representative of the beneficiary company.

For any further information, the Investment Banking function of Banca Profilo should be contacted at [email protected].

Any updates will be published in this same section

Answers to frequently asked questions – FAQ

http://www.mef.gov.it/covid-19/faq.html