The Swedish Government today proposed extending the government credit guarantee program ‘Företagsakuten’ into 2021 so as to cover lending after 31 December.

The program is intended to facilitate lending to small and medium-sized companies affected by the pandemic.

The Företagsakuten program was launched in spring 2020 as part of the government’s measures to support the business sector during the ongoing pandemic and builds on an agreement between the government parties, the Centre Party and the Liberal Party.

Although the economic outlook has improved, uncertainty remains concerning economic development, not least for a number of vulnerable sectors such as the tourism and hospitality industry and transport.

The government has therefore chosen to extend Företagsakuten as part of its support to small and medium-sized companies in 2021. The program means that government credit guarantees can be provided until 30 June 2021.

The credit program is a way to help maintain the supply of credit to small and medium-sized companies while uncertainty regarding development of the economic situation remains.

As of 27 November, 684 loans had been issued with government credit guarantees amounting to a total of SEK 2.4 billion.

Most of the loans were paid during the acute phase of the pandemic in spring 2020, when Företagsakuten guaranteed a significant part of all lending to the country’s small and medium-sized companies.

It is proposed that the guarantee framework be halved in 2021 from SEK 100 billion to SEK 50 billion, which in light of the current economic uncertainty is considered to be an adequate level.

Since central government bears 70 per cent of the risk, this means that loans from banks that can be guaranteed if the program is used to the fullest extent could amount to SEK 71.4 billion.

Swedish Government