SMEs

• The government introduces a state guarantee of 70% of banks' new lending to otherwise healthy SMEs in the relevant industries that can cover operating losses due to Covid-19.
• To be included in the scheme, an operating loss of more than 50% must have occurred
• Assuming that 1,600 companies use the scheme with an average loan amount of DKK 3 million, the scheme will mean DKK 4.8bn
• Total guaranteed amount is DKK 17.5bn, with the framwork being able to support up to DKK 25bn in loans
• Loss limit of DKK 5.4bn

Enterprises

• The scheme covers 70% of the banks’ and certain other lenders’ new loans or working capital facilities to large Danish and Faroe Islands incorporated companies
• They need to have experienced at least a 30% decline in revenue due to covid-19
• Total guaranteed amount is DKK 25bn, with the framwork being able to support up to DKK 35.7bn in loans
• When calculating the loss of revenue, any loss compensation which the company expects to receive from another government scheme established as a result of COVID-19 must be deducted

Only loans ('Corona loans') that meet the following criteria are eligible for a guarantee under the scheme:

• The loan must be issued by a financial institution (including leasing companies).
• The loan must be finally approved by the relevant financial institution's credit committee etc.
• The loan must be newly issued for the purpose of funding a loss of revenue caused by the COVID-19 outbreak (i.e. the guarantee scheme cannot be used to secure existing loans).
• The loan must be priced on the basis of a realised or expected loss of revenue of more than 30 % over a minimum period of 14 days from 1 March 2020 to 30 September 2020
• If a guarantee has been issued under the scheme on the basis of an expected loss of revenue, and this expected loss of revenue is not realised, the guarantee already issued will be written down by 70% of the unrealised expected loss of revenue