The extension of the ICO credits was approved on November 19th. The date on which RDL 34/2020 was published in the BOE. By which the measures relating to the financing of the self-employed and companies granted by the Official Credit Institute are approved. ICO credits regulated by RDL 8/2020, with support measures to face the crisis caused by Covid-19.
Extension of the ICO credits
The novelty included in this RDL is summarized below:
- The credit institutions will keep the financing lines open until the 30th ofJune 2021.
- Provided that the requirements indicated below are met, the maturity of these ICO credits and their guarantees may be extended for a maximum additional period of 3 years. In addition, entrepreneurs may request the financial entity to increase the grace period for the repayment of the principal by a maximum of 12 months. If the total grace period, taking into account the initial grace period, does not exceed 24 months. The capital corresponding to the instalments of the grace period may, with the agreement of the parties, be added to the last instalment of the loan. It can be prorated in the remaining instalments or amortized through a combination of both systems. In the absence of agreement, it will be prorated to the remaining installments.
Requirements for the concession
The requirements for the concession, upon request of the debtor, and with a maximum application date established for the 15th of May 2021, are:
- That the total maturity of the guaranteed operation does not exceed eight years from the date of initial formalization of the operation.
- The guaranteed financing operation must not be in arrears (unpaid for more than 90 days), nor must any of the remaining financing granted by the entity to the same client.
- The debtor must not be in a situation of default when consulting the files of the Central Risk Information of the Banco de España (CIRBE) on the date of formalization of the extension.
- That the financial institution has not communicated to the entity granting the guarantee any non-payment of the guaranteed operation with the debtor on the date of formalization of the extension.
- That the debtor is not subject to bankruptcy proceedings.
For any doubt or help in applying for these credits, please do not hesitate to contact us.