The core elements of the framework defined by the Government and reported to the banks are the following:
Which companies can access the Covid-19 Credit Line for working capital?
Companies with annual sales of up to 1 million UF. This covers 99% of all existing companies in the country.
What is the Covid-19 Credit Line for working capital?
Covid-19 Credit Line for working capital is for an amount equivalent to up to 3 months of sales in a singapore phone number list normal period (October 2018-October 2019).
What will be the mechanism to pay this loan?
This line of credit will have a 6-month grace period and will be paid in installments over a period ranging from 24 to 48 months.
How much will the interest on this loan be?
The loans will have a maximum interest rate (TPM+3%), which, under current circumstances, is equivalent to a real interest rate of around 0%.
How do I know if my bank can give me this line of credit?
The banks are committed to offering the Covid19 credit line in a massive, expeditious and standardized manner. This means that it will be available to the vast majority of commercial clients of the banks, that is, 1.3 million potential beneficiaries, considering legal entities and natural persons with the start of productive activities, who meet the eligibility requirements and annual sales of less than 1 million UF.
In turn, the banks have been asked to report weekly on requests and approvals in order to monitor compliance with this commitment and the transparency of the process.
What happens with the other loans I have with the bank?
For companies that subscribe to the Covid-19 Credit Line, banks will only reschedule the credits that the debtor maintains in the same Bank that grants the Covid Credit, not being obligatory for the other creditor banks (they are only obliged to extend judicial executions of non-performing credits by at least 6 months). The 6-month postponement does NOT apply to revolving or contingent credits, foreign trade letters, factoring, guarantee notes, leasing operations and other similar ones.
What requirements will the bank ask for?
The basic eligibility criteria for accessing these state guarantees will depend on each financial institution, which will be responsible for the decision to grant guaranteed financing, according to the criteria established in its INTERNAL POLICIES on credit risk. Some requirements:
1. It is a basic requirement to be eligible to have at least a tax ID and a start of activities before the SII and must have been COMMERCIALLY affected by the effects of the pandemic (a sworn statement is made in this regard)
2. Annual Net Sales limits, as determined by the Regulation, must be complied with. Funds may ONLY be used for working capital (other uses are satiated).
3. It is important to consider that companies or entrepreneurs classified as having a deteriorated portfolio by the respective Bank (classification varies according to the Bank) are also not eligible for these loans.
4. Companies with Annual Net Sales of up to UF 25,000 cannot be part of a bankruptcy procedure, nor be in arrears of more than 30 days as of October 30, 2019.
Which banks signed the agreement?