How does microcredit work?

To be eligible for the Fund, professionals must be registered with professional associations or join professional associations registered in the list kept by the Ministry of Economic Development pursuant to law 4/2013. Professionals and businesses must operate in the sectors eligible under the Fund’s Operating Provisions.

 

What is the maximum amount of the microcredit? and the maximum duration?

micro credit

Loans can have a maximum duration of 7 years, cannot be backed by collateral and cannot exceed the limit of $ 25,000 for each beneficiary. This limit may be increased by $ 10,000 if the loan provides for fractional disbursement, making the payments subject to timely payment of at least the last six previous installments and the achievement of intermediate results established by the contract. It is possible to grant the same person a new loan for an amount which, added to the residual debt of other microcredit operations, does not exceed the limit of 25,000 dollars or, in the foreseen cases, 35,000 dollars. The reservation does not automatically imply the granting of a guarantee or of the related financing. The reservation remains valid for the next 5 working days.

Within this period, the beneficiary must find a person available to grant the financing and to confirm the booking online. After confirmation of the guarantee, the request for admission to the guarantee must be submitted within 60 days by a person authorized to operate with the Fund.

 

What are the eligible purposes of funding?

credit loan

Loans for the purchase of goods and services directly related to the activity carried out (including the payment of the leasing fees, the financial microleasing and the payment of the expenses connected to the underwriting of insurance policies), the payment of salaries of new employees or working members and the costs incurred for training courses.

 

What are auxiliary services?

credit loan

The entities that provide a microcredit operation are required to provide, during the preliminary investigation and during the repayment period, at least two of the auxiliary services of assistance and monitoring of the financed subjects envisaged by the legislation. These services may concern support for the definition of the development strategy, training on administration techniques or the use of advanced technologies, the definition of marketing strategies, support for the solution of legal, fiscal and administrative problems or for the identification of critical issues of the funded project.

 

Maximum amount, financing characteristics

Maximum amount, financing characteristics

Loans can have a maximum duration of 7 years, cannot be backed by collateral and cannot exceed the limit of $ 25,000 for each beneficiary. This limit may be increased by $ 10,000 if the loan provides for fractional disbursement, making the payments subject to timely payment of at least the last six previous installments and the achievement of intermediate results established by the contract.

It is possible to grant the same person a new loan for an amount which, added to the residual debt of other microcredit operations, does not exceed the limit of 25,000 dollars or, in the foreseen cases, 35,000 dollars. The reservation does not automatically imply the granting of a guarantee or of the related financing. The reservation remains valid for the next 5 working days. Within this period, the beneficiary must find a person available to grant the financing and to confirm the booking online. After confirmation of the guarantee, the request for admission to the guarantee must be submitted within 60 days by a person authorized to operate with the Fund.

 

Who should I contact to confirm the guarantee booking?

credit loan

To confirm the booking, the company or professional can contact a bank, a supervised financial intermediary or a microcredit operator (ex art.111), authorized to submit guarantee requests to the Fund. After one of the listed subjects has confirmed the booking, the guarantee request, always within 60 days, can also be made by a condition that the latter indicates as the lender the same that made the confirmation (in others terms the confidi can not confirm the booking, but can make the request for admission to the guarantee based on a reservation confirmed by a lender)

 

Clarification on booking and guarantee request

credit loan

It is possible to make multiple booking requests, provided that the sum of the amounts does not exceed the limit of 35 thousand dollars. If the reservation expires due to lack of confirmation within the deadline, the relative amount is canceled from the occupied ceiling and a new request can be made.

Booking is not a necessary step to obtain the guarantee. Companies and professionals can directly contact banks, supervised intermediaries, microcredit operators or confidants who, even in the absence of a reservation, can make the request for admission to the guarantee for a microcredit operation. The resources destined for microcredit represent the ceiling within which it is possible to acquire online reservations. If this limit is reached, the reservation of resources is suspended, to be eventually reactivated with the resources freed from the unconfirmed reservations. In case of suspension of the reservation, the guarantee applications on the microcredit operations presented by banks, trust and accredited intermediaries will continue to be accepted by the Manager, even in the absence of a reservation.

 

Guarantee granted without economic-financial evaluation

financial loan

The modalities of access for microcredit operations to the public guarantee are particularly advantageous : the Fund intervenes without the economic-financial evaluation of the final beneficiary. This means that, in order to access the guarantee, there is no need to present any accounting documents or a business plan to the Fund: the creditworthiness of the company or professional is assessed by the lender.

The coverage of the guarantee for all microcredit operations is the maximum provided for according to the legislation in force: in fact, the Fund intervenes up to 80% of the amount of the loan granted (Direct Guarantee) or 80% of the amount guaranteed by Trust or from Other Guarantee Fund, provided that the guarantees issued by them do not exceed 80% of the loan. The granting of the guarantee is completely free, as it does not involve the payment of any commission to the Fund.

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