Government measures in key jurisdictions 4th edition - Flipbook - Page 130
Sweden
Contributor: Hannes Snellman
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
Johanna Wärnberg| johanna.warnberg@hannessnellman.com|
+46 760 000 018
Nicole Jerad| nicole.jerad@hannessnellman.com |
+46 760 000 083
State loan guarantee programme for SMEs
The Swedish Government has implemented a state guarantee for new loans granted by banks to
Swedish companies which have experienced financial distress due to the COVID-19 pandemic. The
guarantee is directed towards small to mid-sized enterprises (“SMEs”). There are however no official
size limits, but the European Commission has issued a recommendation setting forth that the main
factors when determining whether an enterprise is a SME are (i) staff headcount (under 250) and (ii)
turnover or balance sheet total (under EUR 50,000,000 in turnover or EUR 43,000,000 in balance
sheet total).
The Swedish state guarantees up to 70 per cent of the loan amount, up to SEK 75,000,000 per debtor
(with a possibility for the Swedish National Debt Office (Sw. Riksgäldskontoret) to grant exceptions
from this limitation). Interest will accrue during the entire credit period, but the debtor’s interest
payments may be postponed during the first twelve months. No amortisation is required on the loan
during the first twelve months and the loan may be free from amortisation during the entire loan
period. The guarantee for loans taken under the guarantee program is valid for up to three
years. The guarantee only applies to loans granted on or before 30 September 2020.
Almi’s bridge loan
In order to bridge a period of financial distress resulting from the COVID- 19 pandemic, start-ups and
SMEs in Sweden can apply for a bridge loan with Almi, a state-owned non-profit company. Due to
COVID- 19, Almi has received an additional SEK 3 billion in order to increase its lending to start-ups
and SMEs. The bridge loan is granted for a term of twelve months with an individual floating interest
rate up to 5.01 per cent, no set-up fee and a possibility to apply for interest and amortisation
deferrals for up to twelve months. After the initial twelve months there is a possibility to convert the
bridge loan into a new loan with the same terms applied as the terms applied at that time.
State reorientation support
The Swedish Government has introduced a financial support for companies which have had an
annual turnover of at least SEK 250,000 and a loss of turnover of at least 30 per cent due to the
COVID-19 pandemic. The loss of turnover is calculated by comparing the turnover of March and April
2020 with the turnover for the same months of 2019. The support should help cover the company’s
fixed costs and may in any event not exceed SEK 150,000,000. The expiry date for applying is 1
September 2020.
Miscellaneous
In addition to the schemes mentioned above, the Swedish Government has also implemented
certain financial support to the airline, shipping, public transport and fishing industries.
Employment
Short-term work
What financial
support is the
government
providing
to businesses and to
individuals on
employment
Swedish companies can obtain a governmental subsidy for short-term work, meaning that the working
hours of the employees can be reduced with up to 60 per cent (however, up to 80 per cent during May,
June and July), whereas the employees retain approximately 90 per cent of their salary. The government
subsidy covers 75 per cent of the costs for this reduction.
In order to qualify for this subsidy, the following criteria must be met:
• The company should be able to demonstrate financial problems resulting from the COVID-19
pandemic;
• In the event that the company is bound by a collective agreement, the short-time work must be
agreed upon with the company’s signatory trade unions;
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