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CORONA Crisis: COVID-19 Crisis Management Fund Austria

FALCON Information On CORONA Crisis
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Andreas Maitzen
20.03.2020

The COVID-19-FondsG establishes a "COVID-19 crisis management fund" at the Ministry of Finance, which is to be endowed with up to EUR 4 billion.

Regulations yet to be enacted will define, among other things, the procedures for mitigating revenue losses, in particular which enterprises are to benefit, as well as the purpose, amount and duration of the financial measures. These regulations have not yet been issued, so that no statements can be made at this stage. From the statements of the responsible politicians, it can be seen that there should be clarity on this issue by the latest early next week.

  1. The existing bridging guarantees for working capital loans for EPU/SMEs and tourism enterprises will be continued and extended. These guarantees can be applied for with immediate effect at Austria Wirtschaftsservice Gesellschaft mbH (aws), which is a support/funding bank of the Federal Government and 100% owned by the Republic of Austria.
  1. With immediate effect, the aws bridging guarantee, which has already been available since 12 March 2020 in connection with the corona crisis, will be significantly expanded and simplified on behalf of the Austrian Federal Government.
  2. The following extensions are of central importance:
  1. Waiver of the charging of handling and guarantee fees
  2. No planning calculations or business plans required
  3. No loan collateral required
  4. Freelance activities are now eligible for guarantee
  5. Guarantees can also be used for the deferral of existing credit lines
  6. A fast-track procedure shall be introduced to enable guarantees to be given immediately.
  7. All extension measures will take effect immediately and will also apply to applications for support already submitted. The exception is the accelerated procedure, which will be available in the next few days.
  1. Applications by EPUs/ SMEs are submitted via the principal bank, while Austria Wirtschaftsservice (aws) decides on the granting of liability for 80% of the loan amount. The guarantee period is max. 5 years.
  2. Financing is supported for
  • running costs (e.g. personnel costs, material costs) and
  • the deferral of existing credit lines

for healthy companies which, due to the current "coronavirus crisis", have no or insufficient liquidity to finance current operations or repay existing credit lines. In order to secure the Company's liquidity in the long term, financing projects that contribute to stabilizing and thus improving the financing structure are to be supported.

The financial circumstances of the company must be such that it can be expected that the supported financing will be repaid. Even very short-term credit financing is eligible for guarantee. As mentioned above, no collateral is required for financing under this measure.

  1. For guarantees for an aws-new commitment (i.e. existing aws-obligations are not taken into account) of EUR 2 million under this measure, a special fast-track procedure must be applied, for the implementation of which we will be happy to advise you at any time.

 

  1. furthermore, the WKBG "Corona Bridging" exists for Vienna to ensure additional working capital/liquidity requirements in connection with the "coronavirus crisis" for small and medium-sized Viennese companies.
  1. The following options are available as corona bypass:
  1. Financing volume from EUR 5,000 - 350,000

for companies with an annual turnover of less than EUR 5 million:

Guarantees for new/additional working capital credit lines due to liquidity requirements because of i.e:

  • Declines in orders and turnover
  • Default and loss of receivables
  • Problems with goods procurement and purchasing
  • Loss of personnel or personnel expenses

Scope of liability up to 80% for operating loans:

For companies with a turnover of less than EUR 5 million:

  • credit lines from EUR 5,000 to EUR 350,000
  • Duration: 3 years final maturity OR 5 years with a 20 % annual repayment
  • Costs (borne by the public authorities):
    • Guarantee fee: 0.8% p.a. of the guaranteed working capital framework (anticipatory)
    • Processing fee: 0.5% one-off

Time limitation:

  • Action initially limited until 30.09.2020
  1. Financing volume from EUR 50,000 - 500,000

for companies with annual sales of more than EUR 5 million:

Guarantees for new/additional working capital credit lines due to liquidity requirements because of i.e:

  • Declines in orders and turnover
  • Default and loss of receivables
  • Problems with goods procurement and purchasing
  • Loss of personnel or personnel expenses

Scope of liability up to 80% for operating loans:

For companies with a turnover of more than EUR 5 million:

  • credit lines from EUR 50,000 to EUR 500,000
  • Duration: 3 years final maturity OR 5 years with a 20 % annual repayment
  • Costs (borne by the public authorities):
    • Guarantee fee: 0.8% p.a. of the guaranteed working capital credit line (anticipatory)
    • Processing fee: 0.5% one-off

Time limitation:

  • Action initially limited until 30.09.2020

 

We hope that we have provided a sufficient overview of the possibilities for your company in Vienna to strengthen liquidity through the public sector.

 

If you have any further questions or wish to implement measures, please do not hesitate to office [at] fal-con.eu (subject: Pls%20Contact%20Me%20With%20Regard%20To%20CORONA%20Government%20Support%20, body: Dear%20FALCON%20Team%2C%0A%0Apls%20contact%20me%20at%3A%20) (contact us at any time).

 

 

 

 

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