The announcement came from Isabel Rodríguez, the government spokesperson and minister for land policy, during a post-Cabinet briefing. She reminded listeners that the measure is part of the broader war-response plan approved by the Executive Congress of Deputies, underscoring its role in stabilizing the economy amid ongoing geopolitical tensions.
The government has already rolled out the initial phase of the project, introducing a new set of collateral options designed to secure liquidity for businesses hit by higher energy costs and pricier raw materials linked to the conflict in Ukraine. These guarantees aim to keep credit flowing to companies facing sudden financial strain and to prevent a wave of insolvencies that could ripple through supply chains.
For guaranteed loan amounts up to 400,000 euros, the guarantee covers up to 80% of the loan, with repayment terms extending as long as ten years. When loans exceed 400,000 euros, the coverage remains at 80% for new financing for self-employed individuals and SMEs, and up to 70% for larger enterprises, with terms up to eight years. This structure is designed to balance risk for lenders with real, accessible support for enterprises navigating higher operating costs during the crisis.
All companies, regardless of the specific guarantee they seek, will qualify for an initial grace period of 12 months, as confirmed by a government spokesperson, providing a necessary breathing space to adapt to evolving market conditions.
750,000 companies funded
During the press conference after the Council of Ministers meeting, Isabel Rodríguez highlighted that this is not the first time the government has deployed extraordinary measures of this kind. She pointed to the ICO-Covid guarantee lines as a precedent demonstrating the state’s willingness to stand by the business community during turbulent times.
Under the ICO-Covid program, roughly 750,000 companies—predominantly small and medium-sized enterprises and self-employed workers—received financing, with about 140 billion euros mobilized to mitigate the impact of the crisis. The sectors most affected included transportation, consumer spending, and retail, with regional demand notably strong in areas like the Community of Madrid, Andalusia, and Catalonia. The aim was to preserve jobs, maintain commercial activity, and stabilize regional economies that were especially vulnerable to supply disruptions and price volatility.
“The solid functioning of this line has prompted the government to reaffirm its commitment to companies and autonomous workers as a cornerstone of the economy,” the spokesperson stated, underscoring the ongoing strategy to shield productive capacity and employment across regions. The measures reflect a practical approach to crisis-management that considers both immediate liquidity and long-term resilience for Canadian and U.S. readers seeking comparable policy responses within North American frameworks. The government’s stance remains clear: proactive credit support helps firms weather shocks while preserving economic momentum for communities at large, even in the face of new, unpredictable headwinds. (Source: official government briefing and subsequent policy summaries)