CGIA: "Flop of mini loans up to 25 thousand euros"

The mini loans of up to 25 thousand euros introduced by the "liquidity decree" in support of freelancers, self-employed workers and SMEs have not met with the expected interest. At least until now. To say it is the CGIA which found that up to 30 April the banks had sent to the Guarantee Fund of Mediocredito Centrale 45.703 thousand questions. Well, if we take into account that the audience of companies and freelancers affected by law by this measure is made up of over 5.250.000 activity, it means that only it 0,9 per cent of the latter made use of this measure.

"This flop - reports the coordinator of the Research Office Paolo Zabeo - it was predictable. Many VAT numbers were forced to close temporarily by law and subsequently, following the credit requests raised by the same, the government extended a hand to them with the liquidity decree, forcing them to borrow from banks. A solution that, obviously, could not collect the enthusiasm of the interested parties. In our opinion, however, in this particular moment small businesses should be supported with grants. In other words, it is better for the state to get into debt and not for companies that, unfortunately, risk imploding with too many debts.".

Returning to the data on the presentation of applications to the Guarantee Fund, it cannot be ruled out that the official number (45.703) received by the Guarantee Fund is underestimated. In fact, many requests are still being processed with credit institutions. In fact, many entrepreneurs sent the application incorrectly and were asked to modify / integrate it. Therefore, if we also counted the requests that are "blocked" at bank branches which, according to journalistic rumors, would amount to about 250 thousand, the percentage incidence of companies affected by the micro loan up to 25 thousand euros would still remain very low. A meager 5,6 percent.

"In a moment of national emergency there is no need to make controversy - declares the secretary of the CGIA Renato Mason - tHowever, it is necessary to allow SMEs to access resources more easily. In our opinion, the model to follow is the German one. At the same costs, or almost, but with turnover in free fall, if in the coming weeks companies do not have the necessary liquidity available to meet the needs of every day, in a few months many of these will be forced to close permanently the doors".

As reported above, the CGIA hopes that it will also reproduce in Italy the experience gained in Germany in recent weeks. In fact, to support small businesses, the federal government and the German länder have provided, to entities with less than 15 employees, up to € 15 thousand in non-refundable funds. A measure of great attention to the very small activities that both the Bank of Italy (in the hearing in the Chamber of Deputies on Monday 27 April 2020) and the European Commissioner for the Internal Market and Services, Thierry Breton, they suggested that our government adopt also in Italy.

However, small and micro enterprises have always been heavily in debt and running out of liquidity. In 2019, in fact, they recorded levels of indebtedness that cannot be further adjusted upwards, as instead "suggested" by the "liquidity decree". Those with less than 5 employees, for example, had an average bank exposure (performing) of 115 thousand euros per assignee. An amount that, if increased, risks making many businesses insolvent.

However, it is not only the lack of credit that worries the CGIA, but also the consumption forecasts of Italian families for the current year. According to the Def 2020, in fact, the fall will be equal to 7,2 percent; in absolute terms, the drop in purchases compared to 2019 will be around 75 billion and the expense will be mainly artisans, small traders and self-employed workers who live almost exclusively on household consumption. In short, the revenues of these small businesses are destined to fall disastrously, dragging many neighborhood shops towards the definitive closure.

On the front of the protests that are mounting across the country, the CGIA denounces the serious communication errors made by the Premier Count last Sunday (April 26, 2020). Just two days after the publication of the DPCM, the Italians learned of the existence of a dossier from the Istituto Superiore della Sanità which, through a series of projections, warned that a total reopening of the activities in early May could have caused over 150 thousand hospitalizations in the intensive care units as early as June 8th. We are sure that if the Prime Minister had mentioned the results of this study during the press conference, no one would have criticized the decision to spread the openings of craft and commercial companies. Everyone would have understood, however, the Premier made only a great confusion, further fueling the sense of despair that grips many small entrepreneurs who, in spite of themselves, will return to work, perhaps, only in a month.

CGIA: "Flop of mini loans up to 25 thousand euros"

| Economics, EVIDENCE 4 |