(Communicated)

France Relance participatory loans

As part of the Recovery Plan, participatory loans and recovery bonds are a global mechanism of up to 20 billion euros, intended for SMEs and mid-cap companies. Banks will distribute equity loans from April 2021 until June 30, 2022.

What are equity loans?

Participatory loans are loans for SMEs with 2019 turnover> = 2M € or mid-sized companies, intended to finance the investment.

They have an 8-year maturity and include a four-year grace period.

They can represent 12.5% ​​of annual turnover for an SME or 8.4% for an ETI (revised ceiling in the event of an EMP, see below).

The banks will distribute the loan to companies, they will keep 10% of the debt on their balance sheets and will cede 90% of it to an investor fund, which will benefit from the State guarantee. The banks will remain the interlocutor of the company throughout the duration of the financing.

What is the state guarantee?

The State provides a guarantee of up to 30% of the capital losses of investors.

This guarantee will not apply to the 10% share of participating loans which will remain carried by the banks.

Are equity loans cumulative with the EMP?

A company that has used an EMP can also apply for an equity loan

The maximum participatory loan ceiling is recalculated if the EMP ceiling has also been reached:

-10% of turnover for SMEs (instead of 12.5%)
-5% of turnover for mid-sized companies (instead of 8.4%).