COVID-19 Liquidity Relief for Innovative Start-ups
Available in ITA
13 May, 2020
COVID-19 Pandemic: Among the most severely affected businesses in Switzerland are young and innovative start-up companies. From 7 May to 31 August 2020 under the start-ups’ guarantee scheme, innovative start-ups are eligible to apply for a loan jointly guaranteed by the Federal government (65%) and participating cantons or third parties appointed by the cantons (35%) to the amount of CHF 1 Million per start-up company. The total guaranteed amount can not exceed one-third of the start-up’s 2019 running costs.
On 22 April 2020, the Swiss Federal Council announced its support to promising start-ups encountering liquidity problems caused by the coronavirus. Start-ups in Switzerland were not initially eligible or had minimal access to the existing COVID-19 loan guarantee scheme. Until now, they have faced considerable hardship due to funding requirements based on company turnover. This decision is a positive move to help Switzerland maintain its leading global position as an innovative location for businesses.
Start-ups can submit their applications online for review by a canton appointed body. The responsible loan guarantee organisation grants final approval. An expert group coordinated by Innosuisse – the Swiss innovation agency, is available for consultation if required during the evaluation.
The State Secretariat for Economic Affairs (SECO) has set the criteria concerning the liquidity support for start-ups.
Start-ups that are eligible to apply are:
- Start-ups based in a participating canton and founded after 1 January 2010 but before 1 March 2020
- Companies limited by shares (AG) and companies with limited liability (GmbH) based in Switzerland.
- Start-ups that are not part of the agricultural sector.
- The start-up is not in bankruptcy or composition proceedings or liquidation
- Start-ups that are suffering significant financial and liquidity problems due to the COVID-19 pandemic.
Click here to download the PDF document with complete details, including application requirements.
Partner, Tiziano Ballinari, is available to help with any enquires you wish to discuss.