On March 25, the Federal Council adopted emergency ordinance on granting of credits with joint and several federal guarantees. During its extraordinary meeting on 25 March 2020, the Federal Council addressed the issue of liquidity assistance for SMEs, which should have rapid access to credit facilities to bridge liquidity shortfalls caused by the new coronavirus pandemic. Companies are advised to apply for the credit facilities at their main bank. Facilities will be secured by the Confederation. The corresponding ordinance enters into force on 26 March 2020, from which date credit applications can be submitted.
A quick and straightforward process
Affected companies can apply to their banks for bridging credit facilities representing a maximum of 10% of their annual turnover and no more than CHF 20 million. Certain minimum criteria must be met. In particular, the company must declare that it is suffering substantial reductions in turnover because of the COVID-19 pandemic.
Credits of up to CHF 500,000 will be fully secured by the Confederation, and will be paid out quickly and with the minimum of bureaucracy. Zero interest will be charged. The credit application form will be available on the website “covid19.easygov.swiss” from Thursday, after the ordinance enters into force.
Bridging credits that exceed CHF 500,000 will be secured by the Confederation to 85% of their value; the lending bank will secure the remaining 15%. Each company can obtain a credit of this type for up to CHF 20 million, which means a more rigorous bank review will be required. The interest rate on these credits is currently 0.5% on the loan secured by the Confederation. Companies with a turnover of more than CHF 500 million are not covered by this programme.
More details and credit application form: here
On March 21, the Canton of Ticino has implemented new measures to fight COVID-19.
All cantonal measures can be seen on the following website: https://www4.ti.ch/dss/dsp/covid19/home/
With regard to the measure on the closure of economy RG 1570, in particular as to point 7: “All activities that can be carried out remotely at home are permitted. Access to offices is not permitted for the public. Any presence in the office must be limited and is only possible in compliance with the rules of hygiene and social distance”, trading companies are invited to extend smart-working from home as much as possible and, as far as possible, to keep in the office only a minimum number of staff that is essential for the main activity. This staff should respect the rules of hygiene and social distance. Under no circumstances are the offices open to the public.
On March 16, the Federal Council has declared an “extraordinary situation” in terms of the Epidemics Act and has introduced new measures. The declaration of “extraordinary situation” allows the Federal Council to order the introduction of uniform measures in all cantons.
As of March 16 at midnight until April 19 all shops, restaurants, bars and entertainment and leisure facilities will remain closed. Not affected by the new measures are food stores and pharmacies. The Federal Council has also decided to introduce checks on the borders to Germany, Austria and France (to Italy this measure was already taken). The Federal Council has also authorised the deployment of up to 8000 members of the armed forces to assist the cantons at hospitals and with logistics and security.