Three quarters of the 20 billion guarantees made available to Swiss SMEs in need of liquidity were released in the space of a week: precisely, 14.3 billion were loaned to 76,034 companies for an average credit of 180,000 francs. It quickly became apparent that, at this rate, the $ 20 billion envelope would not be enough. The Federal Council decided on Friday to double it. The surety bond program increases to 40 billion. A tranche of 10 billion is declared urgent, it will be validated next Tuesday by the Parliamentary Delegation of Finance (DélFin), which has the competence to approve such extraordinary credits.
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Only one of the first 20 billion is considered an additional expense and has been entered in this respect in the 2020 budget. The other 39 remain for the time being guarantees. They are planned to cover needs over the next three months. The Federal Council remains opposed to the idea of granting loans with lost funds, because that would expose the federal household to reckless risks, reminded Friday the Minister of Finance, Ueli Maurer.
Detect possible abuse
These interest-free loans are repayable. Ueli Maurer says he is aware that this simple, unbureaucratic emergency solution is not a panacea for all businesses. Some do not see how they will be able to return the amounts received, even within five years, or even seven years for cases of hardship. But we had to act quickly for the 400,000 SMEs (out of a total of 530,000) who had to abruptly interrupt their activities after March 16.
The fact that a company can obtain a credit of less than 500,000 francs from its bank very quickly, without detailed examination, on the basis of a simple self-declaration, involves the risk of abuse. Ueli Maurer considers him weak. But it exists. Some companies may be tempted to take advantage of this rescue action to resolve past financial problems.
Others may try to get support from two different sources, such as a bridge loan from a bank, as well as help through federal sports or culture offices. Still others may seek more than they are entitled to, with advances capped at 10% of sales. Sanctions are in place for those who attempt to abuse these easy and free loans. They will be strengthened.