ICO Ukraine Guarantee Facility
At BBVA We want to help you reduce the impact of the Ukrainian War on your business
If you have a company or are self-employed, you can benefit from the financing we offer, which is backed by the State guarantee line managed by the ICO according to RDL 6/2022.
We will also strive to speed up the formalities of the process.
What can the grants be used for?
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The financing is intended to cover liquidity and investment needs (current expenses, working capital and investments).
Features
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Available for self-employed workers and companies with registered office in Spain that are affected by the economic and social effects of Russia's attack on Ukraine, provided that they are not in arrears with any financial institution or are undergoing insolvency, and do not have Covid ICO Facility guarantees executed for non-payment or have requested debt relief under the Code of Good Practice in relation to these Covid ICO Facilities.
Term and % guarantee according to Temporary Ukraine Framework:
- Temporary Ukraine Framework 2.1 (transactions with total guarantees < €2,000,000, or €300,000 for companies in the fishing or aquaculture sector, or €250,000 for companies active in the primary sector): maximum 10 years. Guarantees may reach 80% of the value of financing operations.
- Temporary Ukraine Framework 2.2: (customers that exceed the Temporary Framework 2.1 and with a maximum of the highest value between (i) 15% of average annual sales during the last three financial years; or (ii) 50% energy cost in the last 12 months): maximum 8 years. Guarantees can reach 80% of the amount of financing operations if you are a self-employed worker or an SME and up to 70% if you are a company. In any case, it can never exceed €150,000,000.
Minimum 12 months grace period for initial capital at the customer's request.
Restrictions:
- These must be new operations, and cannot be requested for renewals or restructurings.
- This facility is not compatible with other grants you have requested for the same investment project.
- Operations under this facility that exceed €50,000,000 will commit to not pay out dividends for the life of the operation.
Facility available until December 1, 2023, or until the €10 billion allocated to the facility is exhausted.
Financing conditions subject to the eligibility criteria required by the ICO, subject to approval by BBVA, S.A. and to the availability of funds in the guarantee facility.
How to request them
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How are the grants requested?
The application is made through the usual BBVA adviser, who will answer any questions and specify how to send in the necessary documentation.
You can also search for open branches in each locality.
Necessary documentation
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What documentation is required?
In order to comply with the documentation requirements specified for self-employed workers and SMEs by the Instituto de Crédito Oficial, here is a list of the documents that are required to process the guarantee facility under the RDL. 6/2022.
Documentation to be provided to BBVA:
In order to comply with the documentation requirements specified for self-employed workers and SMEs by the Instituto de Crédito Oficial, here is a list of the documents that are required to process the guarantee facility under Royal Decree-Law 6/2022. To process the guarantee, you must provide ICO with the following documents for the validation of the guarantee:
- Responsible Declaration of Aid subject to the "Temporary Framework regarding state aid measures aimed at supporting the economy following Russia's attack on Ukraine."
- Responsible Declaration on Compliance with certain conditions for the application for the guarantee via the ICO Ukraine Guarantee Facility, which includes:
a) being affected by the crisis in Ukraine;
b) not be subject to sanctions that the European Union has been able to establish as a result of Russia's attack on Ukraine, and that they are not subject to any prohibition on obtaining the status of beneficiary set out in article 13,2 of the General Subsidies Act 38/2003, of 17 November;
c) is not in insolvency or subject to the circumstances set forth in article 2.4 of Royal Legislative Decree 1/2020 of 5 May, approving the revised text of the Insolvency Act or the regulation replacing it and
d) neither the parent company nor the group companies are domiciled in a tax haven or territory that is not a tax partner.
- Authorization signed by the customer so that ICO and the bank can view the customer's CIRBE details.
- ECOT certificate from the Tax Agency or Regional Tax Agencies that the party is up to date with tax obligations.
- A certificate from the Social Security General Treasury of being up to date with Social Security payments.
- A certificate from the Social Security General Treasury of registration and activities.
- Express consent of the customer to confirm data with the Tax Agency or the Regional Tax Authorities.
- Express consent of the customer to confirm data with the Social Security General Treasury.
- Confirmation of compliance with the average supplier payment times established in Spanish Law 3/2004 of December 29, establishing measures to combat late payment in commercial transactions. or, if it is an audited company, the auditor's certificate stating that the average supplier payment period is compliant.
- If the transaction falls under section 2.2 of the Ukraine Temporary Framework for State Aid and the financing application is benchmarked to 15% of average annual turnover of the self-employed worker or company in the last 3 years, they will have to deliver:
a) annual VAT or substitute tax returns or the annual accounts approved or audited, where applicable, for the last 3 financial years up to the date of the guarantee application. In the case of customers that are subject to the SII VAT settlement scheme, monthly settlements will be required. If the self-employed worker or company has only one or two complete financial years, the audited annual accounts or annual VAT returns corresponding to those financial years will be submitted.
b) if the self-employed worker or company has not been in operation for at least one full year, the tax returns available for the activity period, which in any case must not be less than 3 months. - If the transaction falls under section 2.2 of the Ukraine Temporary Framework for State Aid and the financing application is benchmarked to 50% of energy costs in the 12 months prior to submitting the aid application, proof must be provided from an energy supplier of the company's energy costs for the 12 months prior to the month in which the guaranteed financing application is made to the financial institution.
- Responsible Declaration of Aid subject to the "Temporary Framework regarding state aid measures aimed at supporting the economy following Russia's attack on Ukraine."