One third of the CHF 20 billion offered to small and medium sized Swiss companies has already been lent, according to RTS.
The scheme, designed to help keep companies afloat during the coronavirus shutdown, allows banks to issue risk-free loans guaranteed by Switzerland’s federal government.
So far banks across the country have made 30,000 loans averaging CHF 207,000 and totalling CHF 6.6 billion, reported the broadcaster.
The scheme has two tiers of loans. Loans under CHF 500,000 are interest free and 100% guaranteed by the federal government. Loans between CHF 500,000 and CHF 20,000,000 come with an interest charge of 0.5% and are 85% government guaranteed. The 0.5% interest rate applies only to the portion guaranteed by the government. Banks decide the rate on the rest. No loans of more than CHF 500,000 have been made so far, according to the State Secretariat for Economic Affairs (SECO)
The scheme, which was put in place on 25 March 2020, allows companies with annual revenue less than CHF 500 million to borrow sums up to 10% of their turnover.