ARTICLE BODY

Swiss COVID-19 loans: rates, repayments and what to do in 2026

In a nutshell. From 1 April 2026 the interest rate on COVID-19 loans up to CHF 500,000 dropped to 0.0% (Federal Council decision of 20 March 2026). In March 2026, around CHF 1.7 billion still had to be repaid, out of an original total of CHF 16.9 billion — 72% had already been returned by the end of 2024. For SMEs with loans still outstanding: check the updated rate, respect the quarterly instalments, and in case of difficulty contact the bank immediately.

What the Swiss COVID-19 loans were

Between 26 March and 31 July 2020, the Swiss Confederation made available guaranteed bridge loans to SMEs, to help them through the liquidity crisis caused by the pandemic. The mechanism was simple and deliberately rapid: for loans up to CHF 500,000 a self-declaration was enough, without complex documentation, with disbursement possible within hours.

The final figures speak of 138,000 loans for a total of CHF 16.9 billion disbursed, through around 125 participating banks. The average loan was around CHF 122,000; about 1,100 loans exceeded CHF 500,000 (COVID-19 Plus loans, with a maximum of CHF 20 million).

The Confederation guaranteed 85% of the amount through joint and several suretyship: if the company does not repay, the Confederation pays the bank and then claims back from the company.

Where we are in 2026: almost all repaid

In March 2026 the picture is as follows (source: Federal Council and SECO):

• Outstanding to be repaid: around CHF 1.7 billion
• Already repaid by January 2025: 72% of total volume (around CHF 12.1 billion)
• Companies with loan settled: 53,100 out of 138,000
• Companies with ongoing repayments: 99.5% had already started the repayment plan

The bulk of the programme is therefore already closed. But those who still have an open loan should not lower their guard: deadlines are approaching and compliance with quarterly instalments remains mandatory.

The interest rate in 2026: dropping to 0%

The most relevant news for those still with an open loan is the rate cut decided by the Federal Council on 20 March 2026, in force from 1 April 2026:

For the vast majority of SMEs — those with loans up to CHF 500,000 — the debt cost is therefore zero. The reduction reflects the Swiss National Bank's policy rate, brought to 0% on 20 June 2025. The law on COVID-19 joint suretyships provides that the Federal Council adjusts the rates every year by 31 March based on developments in the money market.

Note: a 0% rate does not mean that repayments are not needed — capital must be returned according to the amortisation plan, even if without interest.

When the loans expire

The deadlines remain the original ones:

• Normal deadline: 2028 (8 years from 2020 disbursement).
• Hardship cases: up to 2030 (10 years total, with extension granted on request to the bank).

The amortisation plan provides for linear quarterly instalments. The first instalment was due by 31 March 2022 and since then the pace has been constant.

What to do if you still have an open loan

If your SME still has an open COVID-19 loan in 2026, here is what is worth verifying:

1. Check the rate applied by the bank: from 1 April 2026 it should be 0.0% (under CHF 500,000) or 0.5% (above CHF 500,000). If you see a different rate, contact the bank for correction.
2. Check the expiry date: normal 2028 or extension to 2030 if you are in the hardship regime.
3. Respect the quarterly instalments: do not suspend payments without agreement. Non-compliance leads to enforcement of the state guarantee and claim-back by the Confederation.
4. In case of difficulties: contact the bank immediately. Restructuring as a "hardship case" is still possible and allows extension to 2030. Do not wait: intervening earlier is always easier than managing an emergency.
5. Keep the documentation in order: contract, amortisation plan, payment receipts. They will be needed both for any bank checks and for the tax return.

Frauds and abuses: the official numbers

The simplicity of access of the programme, designed to be fast in an emergency, also opened space for abuse. At the end of 2024 SECO data recorded:

• 2,767 criminal proceedings opened
• CHF 307 million involved in potential fraud
• 1,054 convictions already issued
• 2.9% of beneficiaries involved in confirmed abuse cases (97.1% without problems)

The most frequent frauds concerned: multiple applications for the same company, false turnover declarations, applications from companies already in liquidation at the time of the request. The sectors most hit by proceedings were construction, catering and trade.

Actual losses for the Confederation, in January 2025, stood at around CHF 145 million (0.86% of the disbursed volume) — a contained figure compared with initial fears, showing that most companies used the funds correctly.

Accounting and tax impact

For those still with an open loan on the balance sheet, the points to keep in mind:

• The loan must be recorded as a medium-term financial liability, with linear quarterly amortisation over the 8-10 years foreseen.
• Interest expenses are tax-deductible if the applied rate is in line with market rates (in 2026: 0% / 0.5% — official rates, therefore deductible).
• Attention to hidden equity: if the company's debt/equity ratio is unbalanced, tax authorities can requalify the loan as equity, with non-deductibility of interest. It is a topic to verify case by case with the fiduciary, especially for companies with a fragile equity structure.

How we help

If your company still has an open COVID-19 loan, Fidav can help you keep accounts up to date, verify the correct tax treatment of the debt and assess the equity position in view of the deadlines. If, instead, you are going through a difficult repayment phase, it is the right time to take stock of the financial structure and assess options — with the data in hand, not when the situation is already critical.

Read more on our accounting and financial administration and on corporate and strategic advisory for financial planning.

Do you have questions about your company's COVID loan? Chat with us on WhatsApp at +41 79 741 02 89 or call +41 91 640 40 20.

FAQ (visible on page + FAQPage schema above)

What is the interest rate on Swiss COVID-19 loans in 2026? From 1 April 2026 the interest rate on COVID-19 loans up to CHF 500,000 dropped to 0.0%, while for loans above CHF 500,000 it is at 0.5%. The reduction reflects the SNB policy rate, brought to 0% on 20 June 2025. Rates are adjusted every year by 31 March based on market developments.

By when must I repay the COVID-19 loan? The normal deadline for full repayment is 2028 (8 years). For companies that obtained an extension as hardship cases, the deadline is extended to 2030 (10 years). Instalments are quarterly and linear. In March 2026 around CHF 1.7 billion still had to be repaid out of the original total of CHF 16.9 billion.

What happens if I cannot repay the COVID loan? The first thing to do is to contact the bank immediately and assess a restructuring as a hardship case, which allows extending the deadline to 2030. Payments must not be suspended without agreement: in case of non-compliance, the Confederation enforces the guarantee (covers 85% of the loan) and then claims back from the company.

How many Swiss SMEs received COVID loans and how many have already repaid them? Around 138,000 Swiss companies received COVID-19 loans for a total of CHF 16.9 billion. By January 2025, 72% of the volume had already been repaid, with 53,100 companies having fully extinguished the debt. 99.5% of companies with active loans had already started the amortisation plan.

How do I treat the COVID loan in my company's balance sheet? The loan must be recorded as a medium-term financial liability, with linear quarterly amortisation. Interest expenses are deductible if the rate is in line with market rates (in 2026: 0%/0.5%, official rates). Attention to hidden equity: if the debt/equity ratio is unbalanced, tax authorities can requalify the loan, making interest non-deductible.