Other support instruments

In order to facilitate the granting of loans backed by the guarantees provided until 31 December 2020 pursuant to Art. 1 (hereinafter the "Italy Guarantee") and Art. 13 (hereinafter the "Central SME Guarantee Fund") of Decree Law No. 23 of 8 April 2020, converted into Law No. 40 of 5 June 2020 (hereinafter the "Liquidity Decree"), the following information is made available.

In the case of a successful application, MBFACTA will join and submit a request for accreditation to the portal.

Who to contact for information

MBFACTA remains available at the usual addresses known to the Client as well as at info@mbfacta.it

Italy Guarantee

Some brief information is provided below on the loans backed by the Italy Guarantee; for further information please refer to the following links:

www.sacesimest.it/coronavirus/garanzia-italia

https://www.mef.gov.it/covid-19/faq.html?s=3

Applicant requirements

The parties (hereinafter referred to as the "Beneficiary Businesses") eligible to apply for financing under the Italy Guarantee are small and medium-sized enterprises as defined in European Commission Recommendation No. 2003/361/EC (hereinafter referred to as "SMEs"), including the self-employed, self-employed VAT-registered professionals, professional associations and professional partnerships, as well as all other types of enterprise regardless of size, business segment or legal form, which meet the following requirements:

  1. have registered office in Italy;
  2. were not in difficulty as at 31 December 2019 pursuant to Article 2(18) of Commission Regulation (EU) No. 651/2014 of 17 June 2014, Regulation (EU) No. 702/2014 of 25 June 2014 and Regulation (EU) No. 1388/2014 of 16 December 2014 and were not present as at 29 February 2020 among impaired exposures in the banking system, as identifiable by MBFACTA;
  3. only with reference to SMEs, where they have access, have already used up to full capacity (a) the Guarantee Fund referred to in Article 2, paragraph 100, letter a), of Law No. 662 of 23 December 1996, as well as (b) the guarantees granted pursuant to Article 17, paragraph 2, of Legislative Decree No. 102 of 29 March 2004.

 

Any business that controls (or is controlled) directly or indirectly, pursuant to article 2359 of the Italian Civil Code, a (or by a) company resident in a country or territory that is non-cooperative for tax purposes shall not be considered a Beneficiary Business, unless the Beneficiary Business proves that the non-resident entity carries out an effective economic activity, through the use of personnel, equipment, assets and premises.

Forms of financing

Factoring With Recourse in relation to:

  • specific receivables relating to invoices issued by the Beneficiary Business by no later than 31 December 2020, with the understanding that advance payment of receivables represented by invoices that are due within 7 days of the date of the request for the Italy Guarantee ("Spot With Recourse") cannot be requested;
  • existing or future receivables represented by invoices issued in 2020 or 2021, provided that the contract for the supply of goods/services is entered into - by the Beneficiary Business with the debtor - by 31 December 2020 and that the invoices issued in 2021 refer to services provided in 2020, with the understanding that advance payment of receivables represented by invoices that are due within 30 days of the date of the request for the Italy Guarantee ("Revolving With Recourse") cannot be requested.

 

The amount of the Spot With Recourse loan or the Revolving With Recourse credit limit may not exceed the amounts specified in the regulations.

The requested financing must be for one of the following purposes:

  1. investments,
  2. personnel costs,
  3. costs relating to rent or leases of business units, or
  4. working capital,

exclusively for production facilities and business activities located in Italy.

  1. up to a maximum of 20% of the amount disbursed, for the payment of loan instalments due or falling due in the period between 1 March 2020 and 31 December 2020 for which repayment is objectively impossible as a result of the spread of the COVID-19 epidemic or the measures aimed at preventing and containing it and provided that the objective impossibility of repayment is certified by the owner or legal representative, or another person vested with the necessary powers, of the Beneficiary Business.
Cost of financing

The cost of the financing covered by the Italy Guarantee will consists of the cost of the Italy Guarantee, the fee relating to the financing limited to the recovery of costs and the interest rate including a margin.

In any case, the cost of the financing covered by the Italy Guarantee will be lower than the cost that would have been applied by MBFACTA for transactions with the same characteristics but lacking the Italy Guarantee.

Central SME Guarantee Fund

The Liquidity Decree enhanced the SME Guarantee Fund to address the immediate liquidity requirements of businesses and professionals who are dealing with the consequences of the COVID-19 epidemic. Access procedures have been simplified, guarantee coverage increased and the group of beneficiaries expanded.

For information on the main changes introduced by the Liquidity Decree, please refer to the following sites:

www.fondidigaranzia.it/

https://www.mef.gov.it/covid-19/faq.html?s=3