Type of Intervention: Business support
Level of Jurisdiction: National
Overview: The Swedish Government will guarantee 70 percent of any new loans that banks provide to companies experiencing financial difficulties due to the COVID-19 virus. The guarantee will be issued to banks, which in turn will provide guaranteed loans to companies.
As usual, the borrower pays interest to the bank, determined by the bank and based on their credit risk assessment of the individual company, taking into account that the central government is guaranteeing a large part of the loan. The borrower may defer paying interest on the loan for the first 12 months.
Full details here: https://www.government.se/articles/2020/03/proposed-central-government-loan-guarantee-programme-for-small-and-medium-sized-enterprises/