Government measures in key jurisdictions 5th edition - Flipbook - Page 134
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 applies to loans granted on
or prior to 30 June 2021.
Almi’s bridge loan
In order to bridge a period of financial distress resulting from the COVID- 19 pandemic, startups 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 ending on
or prior to 31 December 2021 with an individual floating interest rate up to 4.69 per cent, no
set-up fee and a possibility to apply for interest and amortisation deferrals for up to twelve
months. After the end of the initial term, or 31 December 2021 (as applicable), 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 due to the Covid-19
pandemic to help cover the company’s fixed costs in accordance with the below:
•
Companies with a loss of turnover of at least 30 per cent for March and April 2020
compared with the turnover for the same months of 2019. The support may in any event
not exceed SEK 150,000,000. The expiry date for applying was 1 September 2020.
•
Companies with a loss of turnover of at least 40 per cent for May 2020 compared with
the turnover for the same month of 2019. The support may in any event not exceed SEK
75,000,000. The expiry date for applying was 30 November 2020.
•
Companies with a loss of turnover of at least 50 per cent for June and July 2020
compared with the turnover for the same months of 2019. The support may in any event
not exceed SEK 8,000,000. The expiry date for applying was 30 November 2020.
Regulations with support for the period between August 2020 to February 2021 have been
proposed by the Swedish Government and approved by the EU Commission but have not
yet entered into force. The support will be divided into three periods of two months and the
levels of support depending on period (e.g. a loss of turnover of a minimum of 30 to 40 per
cent will be required and the support may in any event not exceed SEK 72,000,000).
Furthermore, the Swedish Government has introduced a financial support for sole
proprietorships (Sw. enskild näringsidkare) and partnerships (Sw. handelsbolag), which have
had a loss of turnover due to the Covid-19 pandemic of at least 30, 40 or 50 per cent for
periods between March 2020 and February 2020, depending on application period. Support
can be granted for up to 75 or 90 per cent of the business’s loss of turnover.
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Government measures in key jurisdictions
