Liquidity Support For Start-Ups Hit By COVID-19

With its COVID-19 Joint and Several Loan Guarantee Ordinance dated 25 March 2020 ("COVID-19 Guarantee Ordinance"), the Swiss Federal Council established a liquidity support scheme for small and mid-sized entities. Unfortunately, start-ups were not eligible for guaranteed credits under the COVID-19 Guarantee Ordinance. Following a first announcement on 22 April 2020, the Swiss Federal Council introduced a new liquidity support scheme for innovative Swiss start-ups on 4 May 2020 ("Start-up Support"). The guaranteed credits will become available as of 7 May 2020. Although highly appreciated, some start-ups might not benefit from the new support scheme.

1. The Start-up Support

Under the Start-up Support, a start-up may obtain a guaranteed loan in an amount equalling one third of the start-up's 2019 current expenses, but not more than CHF 1 Mio. The Start-up Support is essentially an extension of the COVID-19 Guarantee Ordinance, but with own eligibility requirements