Federal Council adjusts interest rates for COVID-19 loans

The Covid-19-Solidarbürgschaftsgesetzes stipulates that the Federal Council adjusts the interest rates on COVID-19 loans to market developments every 31 March. When the financial assistance was launched in March 2020, the interest rates were 0.0% loans of less than CHF 500'000 and 0.5% for loans of more than CHF 500'000. The reviews in 2021 and 2022 did not result in any adjustments to the interest rates.

When setting the interest rates for the COVID-19 loans, the Federal Council takes into account, among other things, the level of the SNB key interest rate. This is now 1.75%. The Federal Council has decided to increase the interest rates for COVID-19: on loans of up to CHF 500'000, an interest rate of 1.5% will be due from 1 April 2023, and on loans of over CHF 500'000, an interest rate of 2%.

Not only because of the higher interest rates, we recommend repaying the COVID-19 loans as soon as possible in order to regain entrepreneurial freedoms such as the possibility to distribute profits or to finance group companies.