Some 57 billion euros in state guaranteed loans (PGE) have been granted to 350,000 companies. This statement, communicated by the director general of BPI France, Nicolas Dufourcq, represents the situation of these loans on May 5.
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Since the installation of the device on March 25, companies, whatever their legal form, can apply to their usual bank for a loan guaranteed by the State in order to support their treasury, weakened by the coronavirus crisis. This loan can cover up to a quarter of a company's annual turnover.
Heard by videoconference last week before the Senate's economic affairs committee, the director general of the public investment bank said that very small businesses represented 90% of the total. Ultimately, Nicolas Dufourcq estimates that the EMPs “ will go beyond 100 billion euros, perhaps even more. "
Companies in collective proceedings clearly eligible
Vehicle repair, manufacturing industry, scientific and technical activities as well as accommodation and catering are the main sectors affected to date by this financial assistance. Although the State wishes to protect companies from bankruptcies in the face of the pandemic, requests for EMPs for companies whose solvency is deemed less solid by the Banque de France, often already very fragile before the crisis, were studied on a case-by-case basis . And the eligibility of those under collective procedure, that is to say under judicial supervision, was not specified in the text previously in force.
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While the gradual deconfinement of France began on Monday, May 11, Bercy expects a new wave of requests. In a decree dated May 7, the Ministry of Economy and Finance specifies and widens access to loans guaranteed by the State to new businesses. Now, those placed in safeguard, receivership or liquidation since January 1 can clearly appeal to loans guaranteed by the State. Thanks to the backing of the European Commission, companies that benefit from a recovery plan also become eligible.
In addition, certain civil real estate companies, previously excluded from the system, may also make requests. Companies dealing with historic monuments, or construction-sale companies as well as certain civil investment companies with legal person status are concerned. Another clarification of the decree, investment organizations of the OPPCI type (collective investment organization in property reserved for professionals) may also request State aid. They are weakened after granting rent deferrals in recent weeks due to confinement.
Finally, crowdfunding crowdfunding platforms , which allow individuals to finance SMEs, are now included in the system. The terms and conditions relating to the granting of loans by these intermediaries should be clarified in the coming days.
The " ready rebounds " to complete the regional system of PGE
In addition to the EMPs, the Public Investment Bank has been offering a “ rebound loan ” aid facility for 10,000 to 50,000 euros for a few weeks , in partnership with the regions, to help companies with cash flow difficulties. These loans, which complement the EMP scheme, are aimed at VSEs and SMEs generating up to 50 million euros in annual turnover and employing less than 250 employees.
These “ rebound ” loans , repayable over a period of seven years and benefiting from a two-year deferral, are granted without guarantee on the assets of the company or the assets of its manager. The Bpi relied on the French fintech Younited Credit, specialist in consumer loans, to develop a 100% online platform allowing small companies to obtain these loans quickly since April 23.
When a company applies for financing on the Bpifrance site, Younited Business Solutions (the fintech division of Younited Credit) ensures the electronic signature of the credit contract. The fintech takes care of part of the operational anti-fraud controls, the management of financial flows and the creation of refinancing vehicles. The setting of the rate for this "rebound loan" belongs to each region. Auvergne-Rhône-Alpes, for example, has opted for a zero rate.