SGR Backs €2.7B in SME, Freelancer Loans by 2024
- In 2024, the Reciprocal Guarantee Societies (SGR) played a pivotal role in supporting small and medium-sized enterprises (SMEs) and freelancers, injecting a significant €2.694 billion into the economy...
- The association reports that these figures represent a 5% increase in the amount facilitated compared to 2023.
- José Pedro Salcedo, president of SGR-CESGAR, emphasized the association's ongoing dedication to supporting the financial needs of small and medium enterprises.
Reciprocal Guarantee Societies (SGR) Fuel SME Growth with €2.69 Billion in Financing
Table of Contents
- Reciprocal Guarantee Societies (SGR) Fuel SME Growth with €2.69 Billion in Financing
- Reciprocal Guarantee Societies (SGRs): Your Questions Answered
- What are Reciprocal Guarantee Societies (SGRs) and How Do They Work?
- How do SGRs benefit SMEs and the Self-Employed?
- What is the Current Impact of SGRs on SME Financing?
- What Types of Financing Guarantees are Most Commonly Used?
- Which Sectors Benefit the Most from SGR Guarantees?
- What is the Aquisgrán Initiative?
- What is the role of Cesgar?
- How many SGRs are there in Spain?
- Key Statistics on SGRs and SME Financing in 2024
- What
In 2024, the Reciprocal Guarantee Societies (SGR) played a pivotal role in supporting small and medium-sized enterprises (SMEs) and freelancers, injecting a significant €2.694 billion into the economy through 23,364 formalized guarantees. This facts comes from Cesgar, the association representing the interests of the 18 Spanish guarantee societies.
The association reports that these figures represent a 5% increase in the amount facilitated compared to 2023. Impressively, the financing granted by the SGR already benefits 181,087 SMEs, freelancers, and entrepreneurs, who collectively maintain assets, credits, and loans worth €7.921 billion.
Commitment to SME Financing
José Pedro Salcedo, president of SGR-CESGAR, emphasized the association’s ongoing dedication to supporting the financial needs of small and medium enterprises. He is previewing 2,805 million euros this year.
Our goal is to consolidate ourselves as a key ally for SMEs and autonomous in its access to financing, so essential to boost its activity and growth.
Financial Guarantees: The Preferred Financing Type
Throughout 2024, financial guarantees emerged as the most sought-after type of financing, accounting for 84.9% of the total.Within this category, guarantees destined for investment saw the highest demand at 45.3%, although this represents a decrease of nearly six percentage points compared to 2023.
Conversely, guarantees destined for circulating capital increased by approximately four percentage points, making up 36% of the total. Sgr-Cesgar noted:
These results show that the need for liquidity among companies in the last year, due mainly to the economic difficulties they have had to face as an inevitable result of the increase in production costs and the still high inflation.
Sector Breakdown of Guarantee Requests
Analyzing the activity of SMEs and self-employed individuals who requested endorsement in 2024, the services sector led in the number of operations, with 48.7%. This signifies a rise of more than six points compared to the previous year’s 42.3%.
Guarantees provided to trade businesses held the second position, accounting for 17.8% of total operations. Simultaneously occurring, guarantees granted to the industry sector stood at 17.3% of operations, marking a decrease of over nine points compared to 2023, when it was 26.7%.
Access to Financing for SMEs
Reciprocal Guarantee Societies (SGRs) offer a crucial pathway to access to financing for companies, especially SMEs, that may face challenges in securing funding due to a lack of conventional guarantees. These societies often provide better conditions in terms of interest rates and terms, thanks to agreements with financial institutions. this can substantially reduce financing costs for SMEs, provided the project is deemed viable upon analysis.
Aquisgrán Initiative
The Spanish Guarantee Societies (SGR) and CERSA have launched Aquisgrán, a pioneering initiative designed to further improve access to capital markets for Spanish SMEs. This initiative, structured by Intermoney, has received initial financing from the European Investment Fund (EIF), Instituto de Crédito Oficial (ICO), and Banco Caminos, with backing from the Ministry of Industry through CERSA.
Reciprocal Guarantee Societies (SGRs): Your Questions Answered
Reciprocal Guarantee Societies (SGRs) are playing an increasingly vital role in supporting the growth of Small and Medium-sized Enterprises (SMEs). This Q&A explores the significance of SGRs, how they function, and the impact they have on SMEs, especially in spain.
What are Reciprocal Guarantee Societies (SGRs) and How Do They Work?
Reciprocal Guarantee Societies (SGRs) are financial institutions that provide guarantees to SMEs and the self-employed,enabling them to access financing more easily. They act as a guarantor, improving the creditworthiness of SMEs that may lack sufficient collateral or a strong credit history.
SGRs are member-owned: SMEs become partners by acquiring social quotas, granting them access to the SGR’s guarantee services.[3]
They facilitate access to financing: By providing guarantees, SGRs make SMEs less risky borrowers in the eyes of banks and other lenders.
They can improve financing terms: SGRs often negotiate better interest rates and loan conditions for smes due to their established relationships with financial institutions.
How do SGRs benefit SMEs and the Self-Employed?
SGRs offer several key advantages to SMEs and the self-employed:
Improved access to credit: SGRs enable businesses to secure loans they might or else be denied.
Better financing terms: SMEs can obtain lower interest rates and more favorable repayment schedules.
Reduced collateral requirements: Guarantees from SGRs can reduce the amount of collateral required by lenders.
Business growth: By facilitating access to capital, SGRs empower SMEs to invest, expand, and create jobs.
What is the Current Impact of SGRs on SME Financing?
in 2024,Spanish SGRs injected €2.694 billion into the economy through 23,364 formalized guarantees, according to Cesgar. This represents a 5% increase compared to 2023. Currently,181,087 SMEs,freelancers,and entrepreneurs in Spain benefit from SGR financing,holding assets,credits,and loans worth €7.921 billion.
What Types of Financing Guarantees are Most Commonly Used?
In 2024, financial guarantees accounted for 84.9% of the total guarantees provided by SGRs. Within this category:
Guarantees for investment comprised 45.3%
Guarantees for circulating capital made up 36%.
The increase in guarantees for circulating capital reflects the growing need for liquidity among companies facing economic challenges such as increased production costs and high inflation.
Which Sectors Benefit the Most from SGR Guarantees?
In 2024, the services sector led in the number of operations requesting guarantees, accounting for 48.7%, a rise of more then six points compared to the previous year. Trade businesses accounted for 17.8% of total operations, while guarantees granted to the industry sector stood at 17.3%.
What is the Aquisgrán Initiative?
Aquisgrán is a pioneering initiative launched by the Spanish Guarantee Societies (SGR) and CERSA to improve access to capital markets for Spanish SMEs. It has received initial financing from the European Investment fund (EIF), Instituto de Crédito Oficial (ICO), and Banco Caminos, with backing from the Ministry of Industry through CERSA. The initiative is structured by Intermoney.
What is the role of Cesgar?
CESGAR is a non-profit association established in 1980 that represents the interests of the 18 mutual guarantee societies in Spain. Its purpose includes:
coordination and cooperation among the SGRs.
Defending and representing the interests of its members.
Promoting agreements with public and private, national and foreign institutions that benefit the associates.
How many SGRs are there in Spain?
In Spain, there are 18 Mutual Guarantee Companies, associated with Autonomous Communities.
Key Statistics on SGRs and SME Financing in 2024
| Statistic | Value |
| —————————- | —————– |
| Total Financing Injected | €2.694 billion |
| Number of Formalized Guarantees | 23,364 |
| Increase from 2023 | 5% |
| SMEs Benefiting | 181,087 |
| Assets, Credits & Loans | €7.921 billion |