These devices are intended for companies affected by the Covid-19 crisis and which have not been able to obtain sufficient aid via the loan guaranteed by the State (PGE).
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The government has decided to extend for six months two mechanisms aimed at helping companies face the crisis: repayable advances and subsidized loans intended for SMEs and mid-cap companies in difficulty who have been unable to obtain a loan guaranteed by the State ( PGE) or an insufficient PGE are extended 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 not having found sufficient financing solutions with their banking partner or private funders”, according to the decree taken Thursday by Prime Minister Jean Castex and 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 spread out up to ten years with a grace period of three years. 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. 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.