The Fondo Centrale di Garanzia is a Governmental tool to ease loans to SME’s. It is managed by Banca del Mezzogiorno MedioCredito Centrale Spa (Invitalia Group), key contact to both banks and companies.
What kind of guarantee does the Fondo di Garanzia offer?
The Fund offers a guarantee that may be configured as a high value surety due to 0% risk weight, which help banks release resources and SMEs access to credit.
The coverage ranges between 30% and 80%, with a maximum coverage per SME of 2.5 mln euros.
The cost ranges from 0.25% to 1% of the guaranteed share with one-off payment at the time of the loan disbursement. Usually the payment is up to the bank that later charges the company for it as part of the arrangement fee. In certain specific cases this cost is not charged at all (female companies, innovative start-ups, innovative SMEs, transport sector, the South of Italy).
Which requirements allows access to the Fondo di Garanzia?
Applying companies need to be assessed as economically and financially sound based on the criteria included in the Fund’s Operational Provisions. As an example, rather than an exhaustive list, companies must present some mandatory financial and capital ratios, depending on the Company sector and legal status. Financing directly aimed at sustaining business activities (material investments, tangible and intangible investments, liquidity for suppliers or staff payments) is usually eligible.
How can a Company access the State Fondo di Garanzia?
Companies (beneficiaries) CANNOT APPLY DIRECTLY for a State guaranteed loan; they have to do it via either a qualified intermediary or a bank (the applicant) – with the exception of microcredit operations and operations in favor of the “female entrepreneurships” special section. In these specific cases, companies may book the guarantee themselves but the application needs to be carried out by a bank.
Why outsourcing part of a bank’s activities to NSA?
For NSA’s level of specialization, effectiveness and efficiency, as a result of 17 years of close contact with Italian enterprises. Specialization = full handling of the Fondo di Garanzia, company reports, paperwork to ease the bank procedures. Effectiveness = business developments with the best Italian enterprises, default rate lower than 0.9%, only 320 foreclosures out of 15.000 procedures, 100% guarantees called. Efficiency = loan disbursement and guarantee issue within 40/60 days from the opening of the practice.
Want to learn more?
Contact us for any question or information request.