COVID-19 Emergency – Bridging credit for companies in Switzerland – The Emergency Ordinance of March 25th, 2020
The Emergency ordinance on the granting of credits with joint and several federal guarantees adopted by the Swiss Federal Council on March 25th, 2020, provides businesses affected by the consequences of the Coronavirus crisis with guaranteed bridging credit facilities of up to 10% of their turnover, or a maximum of CHF 20 million.
There are provided two different types of credit facility:
COVID-19 Credit
| Amount | up to CHF 500,000 |
| Cover | 100% of the amount is guaranteed by Swiss Confederation |
| Interest | pari allo 0% |
| Duration | 60 months |
| Conditions | a) company (also individual enterprise) domiciled in Switzerland and founded before March 1st, 2020 |
| b) company without pending bankruptcy procedures or bankruptcy agreement or liquidation | |
| c) company must declare that it is suffering substantial reductions in turnover because of the COVID-19 pandemic | |
| d) at the time of request, the company have not already received guarantees of liquidity provided by the measures for companies in sports and culture fields |
COVID-19 Credit-Plus
| Amount | Between CHF 500,000 and CHF 20 million |
| Cover | 85% of the amount is guaranteed by Swiss Confederation; the remaining 15% is covered by the bank |
| Interest | 0,5% yearly on the 85% of credit; the remaining 15% is determined on basis of the condition offered by the bank and the credit risk analysis |
| Duration | 60 months |
| Conditions | same conditions a), b), c), d) above and |
| e) Company must have an IDI number | |
| f) application submitted for COVID-19 Credit | |
| g) credit granted subject the credit check by the bank |
Both measures are excluded for companies with a turnover upper to CHF 500 Million in 2019 and if the credit is destined to new immobilization investments.
For entire duration of each Credit the following are excluded:
- dividend distributions and capital injection
- loan granting or regranting
- refund of group loan
- assignment of the credit in favour to group companies (directly or indirectly connected) with legal office out of Swiss territory
The granting of a COVID-19 CREDIT shall be completed within a few days with the support of any bank. The entire credit amount will be transferred to the company account
Download the pdf document
Download the Form for the request to the Swiss Banks
See the List of Swiss Banks
