Coronavirus: SMEs and VSEs will be able to benefit from State equity loans online

by bold-lichterman

Small businesses with up to 50 employees will be able from Thursday to apply for equity loans directly to the state on a digital platform, the Ministry of the Economy announced. These loans, of an amount usually between 20,000 and 50,000 euros and whose repayment can be spread over a maximum of seven years, target in particular companies that have been refused by their bank a loan guaranteed by the State. , we said Wednesday in Bercy.

“After the intervention of the credit mediation, these companies can apply to the Departmental Committee for the Examination of Business Difficulties (Codefi) of their department which will examine their request and may grant a direct loan from the State”, according to a statement. A response should be provided to them within 15 days.

Up to 100 million euros

Equity loans are quasi-equity that allow beneficiary companies to strengthen their capital and do not hamper their ability to contract new loans thereafter. But, at 3.5%, their rate is higher than that of EMPs, the costs of which will be within a range of 1% to 2.5% beyond the initial period of one year. A difference that Bercy justifies by explaining that the repayment of the participating loan is “subordinated” and therefore occurs, in the event of difficulty, only after that of the other debts contracted by the borrower. The total amount of these participatory loans could reach up to 100 million euros, taken from the billion euros of state loans to businesses announced last April.

This aid, called “exceptional loans” for small businesses, is distinct from the much larger system of participatory loans that will be distributed by banks to strengthen the equity capital of SMEs and mid-size companies (mid-size companies), for a total amount between 10 and 20 billion euros, and the contours of which must still be the subject of arbitration between the banks and the government.