The system of repayable advances and subsidized loans intended for SMEs and midcaps in difficulty who have not been able to obtain a loan guaranteed by the State (PGE) or an insufficient PGE, is extended by six months, until June 30 2022, according to a decree published on Friday, December 31, in the Official Journal. These aids are intended for companies “weakened by the crisis and having not found sufficient financing solutions from their banking partner or private funders”, according to the decree taken Thursday, December 30, by Prime Minister Jean Castex and the Minister of the Economy Bruno Le Maire, at a time when France is facing a rapid increase in the number of cases of Covid-19 linked to the Omicron variant.
The maximum amount of repayable advances for a company, initially 800,000 euros, is increased to 2.3 million euros, the repayment of which can be staggered up to ten years with a grace period of three years.
A system that mainly concerns industrial SMEs
The number of companies affected by this device is low and mainly concerns industrial SMEs which have not been able to obtain an EMP, the ministry told AFP, specifying that around 200 reimbursable advances had so far been granted for 150 million euros.
To extend this system put in place during the health crisis, 100 million unused credits in 2021 were carried over to 2022, according to Bercy.
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The government announced in mid-December that the combination of a repayable advance or a subsidized loan with a EMP would now be possible, whereas this was not the case previously. Like the EMPs, also extended until the end of June 2022, subsidized loans must be repaid over a maximum period of six years.
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