The program of participatory loans stimulus (PPR) has been launched for two weeks already. But an educational effort seems necessary to popularize it among businesses.
Bercy and the banks are in fact working on the drafting of a “Frequently Asked Questions” on equity loans, like what was done last year when the state guaranteed loans (PGE) were launched. . This manual should be posted online in the next few days.
Objective: to ensure that everyone understands a complicated financing product, but which is one of the key tools to support the recovery and encourage business investment after the health crisis. With a budget which at this stage amounts to just over 12 billion euros.
Because in the field, the promotion of PPR is more complicated than expected. Confusion reigns in particular on the accounting treatment of these new types of loans and their impact on the financial situation of companies.
Fear of debt
“As a result of imprecise and contradictory information, many business leaders mainly see equity loans as additional debt. And they are afraid, because they fear being considered too indebted in the end, and therefore no longer being able to finance themselves properly, ”testifies Germain Simonneau, president of the CPME financing commission.
A company with too high a level of debt can actually find itself penalized in the future, with a downgraded rating with the Banque de France.
Since the first works undertaken by the financial center, participatory loans have always been presented as quasi-equity, able to strengthen the balance sheet and therefore the financial structure of companies.
From an accounting point of view, they nonetheless remain debts and are considered as such, even if their repayment is subordinated to all other loans, in the event of a problem.
Leverage
“The Banque de France has always been reassuring on the analysis it would make of equity loans in the balance sheets. It is even rather a positive factor for the financial structure given their characteristics ”, assures a banking source.
Equity loans are granted for a period of eight years, and begin to be repaid after the fifth year only.
“There is a very significant leverage effect with this type of product, and that must be emphasized. Companies will gain in debt capacity and therefore investment, ”assures Germain Simonneau, who calls for a real educational effort on the part of Bercy, banks and the financial center in general.
Transparency
In banking networks, we ensure transparency and explanation with customers. “Economically, this type of loan will not degrade the financial situation of the company,” assures a banker. But their granting is not automatic, unlike guaranteed loans, and must correspond to a precise investment plan that is consistent with the development of the company ”.
At Bercy, we are confident in the proper deployment of these tools. “Companies must be able to take the time to take ownership of this new, highly innovative system, which has only been deployed for a fortnight. There is no particular concern at this stage, ”confides a source to the ministry.
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