ICO COVID Loans: Solutions for Upcoming Debt Maturities (2026-2030)

Spanish businesses and self-employed professionals are facing a critical financial deadline as COVID-19 state-backed loans, issued through the Instituto de Crédito Oficial (ICO), reach their final maturity dates between 2026 and 2030, according to data from Spain’s Tribunal de Cuentas and Banco de España.

The Scale of ICO-COVID Debt and Maturity Peaks

To cushion the economic blow of the pandemic, the Spanish government launched two state-backed credit lines via the Instituto de Crédito Oficial in 2020: a €100.000 millones liquidity line and a €40.000 millones investment line, carrying public guarantees between 60, 70 u 80 % (e incluso del 90%). According to a May 2026 fiscalization report by the Tribunal de Cuentas using data through September 2025, the initiative resulted in nearly Casi 1.190.000 approved loans totaling roughly €140.000 millones in financing, with over €106.000 millones backed by state guarantees. The data shows that Un 57,5 % of beneficiaries were companies and Un 42,5 % of beneficiaries autónomos.

As these loans matured, subsequent regulatory frameworks allowed term extensions up to 10 years and grace periods. However, Banco de España financial data from December 2025 revealed an outstanding balance of €24.100 millones remaining on these operations. Of that total, un 19,7 % sat under special watch and un 31,1 % calificados como dudosos, meaning nearly casi un 51 %—representing more than €12.200 millones—constitutes troubled debt. While 2025 marked a massive wave of loan closures with 282.466 operations expiring, the Tribunal de Cuentas projects subsequent closure peaks of 176.383 operations in 2026 and 167.933 in 2028.

Legal Avenues and Second Chance Provisions for Autónomos

Many self-employed individuals and small business owners struggling with these final payments are utilizing formal debt restructuring or the second-chance legal framework.

Restructuring, Pre-Insolvency, and Court Procedures

For businesses seeking alternatives to liquidation, Spanish insolvency regulations provide distinct paths depending on the size of the operation. Larger businesses can initiate a pre-insolvency phase by notifying a court of ongoing creditor negotiations, granting a three-month stay—extendable to six months—on certain enforcements while drafting a restructuring plan.

Legal advisors emphasize that early intervention remains critical. Waiting until general default occurs severely limits available legal remedies, whereas acting while a business retains active revenue generation allows for more flexible judicial and out-of-court solutions.