Spanish companies and ICO guarantees

Finance Leave a comment   Published on par Jonatan Carbonell

Currently the Ministry of Economic Affairs and Digital Transformation is seeking to reduce the economic effects generated after COVID-19, offering a line of ICO guarantees to the Spanish business sector. Do you have a business or are you self-employed in Spain? Go on and find out what this aid is all about!

What are ICO guarantees?

The Government of Spain, through Royal Decree 8/2020 of March 17 (article 29) approved a Line of Guarantees of up to 100,000 million euros that contributes to calming the economic effects of the health crisis and to boosting the maintenance of employment in the country.

On the other hand, it should be clarified that when we talk about ICO, we are referring to the Instituto de Crédito Oficial, a public bank with a legal form created to support the Spanish business sector.


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Purpose of ICO guarantees

The main purpose of this line of aid is to guarantee new loans and renewals granted by financial institutions to companies and the self-employed. In this sense, they are responsible for meeting needs such as:

  • Payment of salaries

  • Supplier invoices pending settlement

  • Rentals of premises, offices and facilities

  • Supply costs

  • Liquidity needs


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How to access ICO guarantees?

Both companies and self-employed individuals operating in Spain will be able to access these guarantees through their financial credit institutions, which will decide on the granting of financing, taking into account internal procedures, policies and associated risks.

With the approval of the latest Agreement of the Council of Ministers of November 30, 2021, the term for loans and operations subscribed with self-employed and companies is fixed until June 1, 2022.

If you are self-employed or an SME, these guarantees may cover 80% of new financing operations and renewals.

In case you own a company (not an SME), the guarantee will cover 70% for new loan operations and 60% for renewals.

In case you own an SME operating in the tourism sector, the amount for renewals and new loans provided by the Ministry of Economic Affairs and Digital Transformation is set at up to €2.5 billion.


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ICO guarantee line after the Russia-Ukraine war

Although it is true that the economic recovery has been growing in Spain, this year 2022 the war between Russia and Ukraine has generated great consequences throughout Europe, and with it Spain has been affected by aspects such as inflation.

However, to address this situation, the authorities have once again taken action by announcing a new line of ICO credit guarantees, amounting to 10 billion euros.

The Government of Spain states that these new credits will contribute to cover the liquidity needs caused by the increase in the cost of energy and fuel.


The new reality is that the presidency and the Spanish authorities are joining forces to help the self-employed, SMEs and large companies to cope with the economic impact caused by the COVID-19 pandemic and, more recently, by the war between Russia and Ukraine.

Do you carry out business activities in the country? Contact us and our experts will advise you on legal, tax, accounting and any area you need to operate your business in Spain.

Published on par Jonatan Carbonell

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