The federal government assists efficient and viable SMEs in obtaining bank credits by funding loan guarantee cooperatives.
Starting a new business, or advancing an already existing one, often requires a lot of money. Entrepreneurs can look for external investors or take out a bank credit to cover their financial needs.
The loan guarantee cooperatives are supported by the federal government and facilitate SMEs' access to bank credits because these organisations can provide the banks with guarantees. In Switzerland there are three regional loan guarantee cooperatives, as well as a national loan guarantee organisation for women:
- BG Mitte, loan guarantee cooperative for SMEs
- BG OST-SÜD, loan guarantee cooperative for SMEs
- SAFFA Guarantee Cooperative for Women
- Cautionnement romand, loan guarantee cooperative in French-speaking Switzerland
These cooperatives vouch for credits up to CHF 500,000. The federal government covers up 65 per cent of the loss risk. The federal government also contribute to the administrative costs of the guarantee cooperatives.
Applications for loan guarantees must be handed in to the appropriate loan cooperative.