Term Sheet COVID-19-Loan

30.03.2020 News

written by 

Rolf Hartmann
Bruno Hunziker
Markus Brülhart
Ludovic Duarte 


Swiss Federal Emergency Ordinance dated March 26, 2020 with respect to the provision of loans guaranteed by joint security in connection with the Corona pandemic



- prevent mass dismissals

- secure continued payment of wages

- prevent liquidity shortages

- bridge loan to cover fixed costs



Self-employed persons and businesses (sole proprietorships, partnerships and corporations) that are domiciled in Switzerland and whose annual turnover is not higher than CHF 500 million.



Up to CHF 500,000


Loan Amount

Principle: maximum 10% of the applicant's gross turnover generated in 2019.

Unless the financial statements 2019 are approved, the assessment is based on the provisional financial statements 2019.

If the provisional financial statements 2019 are unavailable, the assessment is based on the financial statements 2018.

In case of businesses formed January 1, 2020 or later, the assessment is based on an estimated annual turnover of three times the total net salary amount of one business year, the minimum being CHF 100,000, and the maximum CHF 500,000.



Currently 0% p.a.


Bank fees




Within 5 years (60 months)

In case of hardship, within 7 years (an extension of 2 years is possible)



The COVID-19-Loans are fully guaranteed by the Swiss Confederation via joint security organizations.



The applicant

- was established/incorporated in Switzerland before March 1, 2020;

- suffers considerable economic loss due to the COVID-19 pandemic, particularly in terms of turnover;    and

- is financially sound, i.e. the applicant is not affected by bankruptcy, composition or liquidation             proceedings.



During the term of the loan, the applicant may not

- pay dividends and contributions in cash (Kapitaleinlagen);

- refinance private or shareholders' loans;

- re-pay intra group loans; or

- transfer the COVID-19 Loan to direct or indirect affiliated group companies abroad.



Fill out the application form provided by the Swiss federal government which is available under the following link:



The signed application form must be filed with the applicant's bank no later than July 31, 2020.


Solvency audit

None. The applicant only needs to confirm that it fulfills the conditions mentioned above.



Swiss bank with which the applicant already has a business relationship.



Within a few hours after filing of the signed application form with the bank.


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