It is now possible to obtain a guarantee from the Growth Fund, which gives SMEs easier access to financing.

The Growth Fund: COVID-19 guarantee for SMEs

If your company is affected by the earnings as a result of COVID-19, the Growth Fund can guarantee new loans or operating credits provided by your financial institution. The guarantee thus gives you easier access to the necessary financing.

The Growth Fund can provide guarantees for new loans and operating credits for small and medium-sized companies that experience or expect to experience a minimum loss of 30 per cent. as a result of the spread of COVID-19.

Facts about COVID-19 guarantee for SMEs:

• The guarantee covers 70 per cent. of the financial institution, the leasing company, etc. any losses.

• The guarantee has a maturity of up to 7 years, which is written down on a straight-line basis annually.

• The price consists of foundation commission of DKK 2,500 and an annual commission, which amounts to 1 per cent. of the amount guaranteed.

Danish, Faroese and Greenlandic SMEs in all industries can receive a COVID-19 guarantee. An SME is defined as companies that:

• employs less than 250 people and has an annual turnover of no more than DKK 50 million. EUR and / or

• a total annual balance sheet of a maximum of DKK 43 million. EUR.

The price of a COVID-19 guarantee for SMEs consists of:

• A foundation commission of DKK 2,500.

• An annual commission of 1 per cent. of the amount guaranteed.

1. Contact your bank: Talk to your bank or financial institution about your options for applying the COVID-19 guarantee to SMEs.

2. The bank applies for a guarantee online: If your financial institution wants to grant a loan against additional cover with a COVID-19 guarantee from the Growth Fund, they simply have to apply for the guarantee online.

3. The Growth Fund reviews the application: The Growth Fund reviews and accepts the notification as soon as possible – typically within 48 hours.

It is not possible to apply for the guarantee directly through the Growth Fund.

Government aid package for business

The guarantee scheme is part of the government’s aid package for business. The scheme’s guarantee framework is a total of DKK 17.5 billion. DKK and an associated loss limit of approx. 5 billion This will facilitate loans of up to the order of DKK 25 billion. kr.

The government and all the parliamentary parties announced the total relief package on 19 March 2020.