What are the European Commission conditions under the Commission State Aid temporary framework, and how do they differ between loans and loan guarantees?

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What are the European Commission conditions under the Commission State Aid temporary framework, and how do they differ between loans and loan guarantees?

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The European Commission temporary framework conditions for state aid were established: • To unblock bank lending to companies and thereby guarantee continuity in their access to finance, in light of the exceptional and transitory financing problems linked to the banking crisis; and • To encourage companies to continue investing in the future, in particular in a sustainable growth economy The conditions are on the basis of Article 87(3)(b) of the EC Treaty. All applicants and projects must demonstrate clearly that they meet these conditions. The conditions for loan guarantees offered under the Temporary State Aids framework by the AAP are covered under ‘Aid in the form of guarantees’. The key points are: • The maximum loan does not exceed the total annual wage bill of the beneficiary (including social charges as well as the cost of personnel working on the company site but formally in the payroll of subcontractors) for 2008 ; • The guarantee does not exceed 90% of the loan, for the dura