Factsheet for case AT-2020-10/215 – Updated – measures in Austria
|Country||Austria , applies nationwide|
|Time period||Temporary, 04 March 2020 – 30 June 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Bernadette Allinger (Forba) and Eurofound|
|Case created||31 March 2020 (updated 21 April 2021)|
|Related ERM support instrument|
On 4 March, following consultation of the social partners, the Austrian government announced to support businesses with bank guarantees to stay afloat. The objective is to ease the financing of business credits for companies, whose revenues and profits have been affected due to the stop of orders, deliveries or other changes of the economic environment, as a consequence of the Corona crisis. A newly simplified and speedy process for the acceptance of these guarantees has been implemented.
The measure is targeted at small and medium sized companies and one -person enterprises (less than 250 employees, max. €50 million turnover or €43 million balance sheet sum); operating in all sectors (whereby for tourism, a separate package has been set up, which is administered by a different institution. See related case 'State support for tourism' (AT-2020-10/215). The guarantee supports 80% of a short term 'bridging' loan, the duration of which cannot exceed 5 years.
The company can request this support via their own bank, a decision will be taken by the public support company AWS (Austrian economic service).
As of 7 April 2020, the AWS bridging guarantee was significantly expanded with immediate effect as part of the government's €15 billion aid fund. The immediately implemented innovations include a 100% guarantee rate for loans up to €500,000 and a 90% guarantee rate for loan amounts up to €27.7 million.
At the end of June 2020, around 14,500 bank guarantees have been approved, in the amount of around €2.5 billion. The majority of approvals were directed towards micro (9,887) and small businesses (3,301), according to the economic ministry.
|Does not apply to workers||
One person or microenterprises
|Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Direct consultation outside a formal body||Direct consultation outside a formal body|
Social partners' role in the implementation, monitoring and assessment phase:
No info available yet.
Eurofound (2020), Bank guarantees for SMEs and one-person enterprises, case AT-2020-10/215 (measures in Austria), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.