Companies weakened by the COVID-19 crisis will be able to repay their loan guaranteed by the state from September 2022, and stagger over four additional years.
Le Monde
New breath of air for the most troubled companies. Initially summoned to repay their loan guaranteed by the State (EMP) from March, companies will now have the opportunity to shift the first repayment of this loan contracted at the beginning of the crisis and to spread their payments over ten years , announced the Minister of the Economy, Bruno the Mayor, Tuesday, January 4th.
These two new measures are addressed to the “a few thousand companies (…) who see the expiry of next spring saying:” I will not get to repay “”, explained the minister to the microphone of RTL
According to him, “25 to 30,000” very small businesses, often traders, craftsmen or restaurateurs, are thus concerned. “We will help them, assured Bruno the mayor. The loan guaranteed by the state, who saved tens of thousands of companies, should not flow them at the time of their refund.”
Whatever the solution envisaged – spread the refunds over a maximum period of ten years, start repaying six months later than originally planned, “at the end of the year 2022”, or both -, the Minister advises these companies the most difficulty to get closer to credit mediation.
“I specify that all this has been validated by the European Commission, by the governor of the Banque de France, François Villeroy of Galhau, and by the French banking federation, with which I will sign an agreement at the beginning of the week”, Underlined Bruno the Mayor.
A total outstanding of 143 billion euros
The Confederation of Small and Medium-sized Enterprises, which has been demanding “for more than one year” the lengthening of the repayment term, said “relieved”, while a number of entrepreneurs apprehended the deadlines of reimbursement of the EMP, “which comes to accumulate with the repayments of reports of social and tax charges”.
“It is nevertheless important that this faculty is open to all companies, regardless of their size or sector of activity,” has declared the organization in a communiqué .
Some 697,000 companies have contracted a EMP since March 2020, for a total outstanding of 143 billion euros. According to The French banking federation , the situation is “reassuring For most companies having subscribed: half has already begun to repay since the summer of 2021, without difficulty “.
In addition, the refundable advances and enhanced loans for SMEs and intermediate enterprises in difficulty that could not obtain from PGE or have an insufficient PGE, was extended by six months, until on June 30, 2022, according to a published decree December 31 in the Official Journal
The maximum amount of repayable advances for a company, initially 800,000 euros, increased to 2.3 million euros, whose refund can be spread up to ten years with a deferred amortization of three years .
The government also announced in mid-December that the accumulation of a refundable advance or a bundled loan with a PGE would now be possible, whereas it was not the case before.