Since March 2013, companies looking for profitable sources of financing their current operations have gained a new tool – de minimis guarantee granted by the State Treasury through Bank Good Finance.
Thanks to it, companies can obtain a loan or a credit line faster at cheaper commercial banks. What is a loan with a de minimis guarantee and which banks grant it?
What is a de minimis guarantee?
The de minimis guarantee is a form of loan security in the event that the borrower fails to repay the loan within the time limit specified in the loan agreement. The de minimis guarantee guarantees that the loan will be repaid.
The de minimis guarantee is the simplest form of public aid allowed by European Union law, which the state can grant without the consent of the European Commission.
The de minimis aid limit for one entrepreneur cannot exceed USD 200,000 (in the case of enterprises operating in the road transport sector, the limit is USD 100,000) in the tax year in which he applies for assistance and during the previous two tax years.
The value of de minimis aid granted to an entrepreneur is converted into euros at the average exchange rate of foreign currencies, announced by the National Bank of Poland, in force on the day of granting the aid.
Thanks to the state guarantee, it will be easier for entrepreneurs to receive financing and its terms will be more favorable than in the case of ordinary loans. Why? First of all – the company does not have to use its own assets as collateral for the bank.
Secondly – the state guarantee is an important argument for banks that are extremely cautious in financing business during the economic slowdown.
What are the de minimis guarantee rules?
The rules of the de minimis guarantee are as follows:
- it is granted for a maximum of 27 months,
- covers up to 60% of the working capital loan granted and cannot exceed USD 3.5 million,
- does not apply to interest and credit costs (e.g. commission or company account fees),
- it must be secured by a blank promissory note issued by the entrepreneur,
- if it is granted in 2013, the entrepreneur incurs no additional costs in this respect, in the following year he will pay 0.5% of the guarantee value as a commission.
Which banks grant revolving loans with a de minimis guarantee?
According to Bank Good Finance, which supports de minimis guarantees at the request of the state, loans with this security can be currently granted by 18 banks.
It is worth remembering that the de minimis guarantee is only a form of securing the debt and the bank is not obliged to grant our company a loan. Before the decision is made, the company will undergo a standard verification procedure at a given bank. If a company has no creditworthiness or there are other compelling reasons to refuse to finance, a de minimis guarantee will not help much.
How much does the de minimis guarantee cost?
The de minimis guarantee is only an “addition” to the loan offered by the bank. Therefore, it is difficult to talk about its costs in her case. It should be remembered that an entrepreneur taking a loan must take into account the necessity to pay a commission for granting it – its amount is determined individually for each client (similarly to ordinary revolving loans).
The second important cost is the monthly fee for maintaining a company account at the lending bank. The range of these fees is really significant and it is worth taking them into account when calculating the total cost of the loan with a de minimis guarantee.
The interest rate proposed by banks for borrowers using de minimis guarantees is also key. Most banks establish them individually for each company.