The guarantee does not cancel the loan
Law 662/1996 established Italy’s SME Guarantee Fund, managed by Mediocredito Centrale. The Fund covers part of the lender’s risk, helping businesses access credit. The business still owes the loan. An 80% or 60% guarantee does not mean the borrower only has to repay 20% or 40%. It describes the share of an eligible loss the Fund may pay to the lender under the applicable rules.
What happens after a missed payment?
The bank will usually request payment and default interest may accrue. If arrears continue, the bank may use its contractual remedies, potentially demanding the full outstanding amount when the conditions are met. One missed instalment does not automatically trigger a Fund payment. A qualifying risk event and recovery steps come first; the lender may then submit a guarantee claim. The loan agreement and rules applying to that transaction determine the details.
If the Fund pays the bank, is the debt gone?
No. Once the Fund pays its covered share, it can seek reimbursement from the business for the amount it actually paid. The lender may still claim any uncovered amount that remains due. Request a written reconciliation: prior payments, outstanding principal, interest, the Fund’s payment and subsequent recoveries. The same sum must not be recovered twice. Personal guarantees and mortgages need individual review; directors and shareholders are not automatically personally liable merely because the company owes a loan.
Why might a public collection notice arrive?
After paying the lender, the Fund, through Mediocredito Centrale, may pursue its reimbursement claim. The rules provide for registration of the claim for public collection, so the business may receive a notice from Agenzia delle Entrate-Riscossione (ADER). The loan has not become a tax. The public claim arising from the guarantee payment is collected using the applicable public collection procedures.
Do not ignore the notice. Request the account and payment details, check service, consider instalments if eligible, ask the creditor to correct errors or credit payments, and seek suspension or appeal when the law allows. Not every objection suspends collection. The competent forum and time limits depend on the claim and the particular act. Disputes about the Fund’s underlying claim should also be raised with the creditor; defects in ADER’s own collection acts are a separate issue.
What if the bank has already collected 30% or 40% of the loan?
First establish how much principal has actually been repaid. Instalments normally include interest as well as principal. “We paid 40% of the instalments” does not establish the outstanding principal.
For a simplified example, assume a €100,000 loan, €40,000 of principal repaid and €60,000 outstanding, with no interest, costs or other recoveries. At 80% coverage, the Fund could pay up to €48,000, leaving an uncovered €12,000. At 60%, the amounts would be €36,000 and €24,000. The bank cannot add 80% of the original €100,000 to the €40,000 of principal it has already collected. Coverage is assessed against the remaining eligible exposure within the approved limits. Actual figures depend on eligible interest, payments, recoveries and the guarantee terms. The Fund can seek reimbursement of what it paid; examine the lender’s uncovered claim separately.
What should you do now?
Contact the bank before arrears grow. Explain the issue and offer a repayment proposal backed by a realistic cash forecast. Rescheduling or settlement may be possible but is never automatic. Collect the agreement, repayment schedule, receipts, guarantee documents and any personal guarantees. Ask for an itemised principal, interest and costs statement. If the Fund has paid or a collection notice has arrived, request the Fund payment and collection details too. Any settlement must state in writing what happens to the lender, Fund and guarantors.
If your business is struggling with a guaranteed loan, start with the documents and a cash forecast. See our approach or request a preliminary review.
Official sources:
Fondo di garanzia: regole operative ↗ · Disposizioni, Parte VI ↗ · Art. 8-bis, DL 3/2015 ↗ · ADER: rateizzazione ↗ · ADER: sospensione ↗
General information only. Each case requires an individual assessment.