Liquidity Measures
Government guaranteed loans (Prêts Garantis par l’État)
Government Measure
Eligible businesses may apply for these loans in order to overcome their cash flow difficulties:
- Duration: up to one year with a unilateral right of extension for the borrower within the limit of 5 years.
- Amount: (i) up to 25% of the last available turnover of the borrower for a full financial year or (ii) two years of aggregate payroll for innovative companies1 or companies incorporated since 1 January 2019 (if more favorable).
- French Government guarantees 70% to 90% of all loans (the percentage depends on the size of the company).
1A company is considered as “innovative” if (i) the company has received a public support for innovation (including Bpifrance individual aids and public supports listed in the Ministerial Order (click here);or (ii) the company has raised funds from French and foreign investors specialized in innovative companies (venture capital fund, private equity fund, etc.), or (iii) the company has been supported by an incubator.
Eligibility
All companies incorporated in France except for:
- Civil Real-Estate Companies (except for civil real estate companies relating to sale and construction and national historic sites and civil real estate companies which their capital are entirely hold by collective real estate investment (organisme de placement immobilier collectifs));
- Credit Institutions;
- Financing Companies.
See here for more information about eligibility.
Companies whose turnover exceeds €1.5b or have more than 5,000 employees and benefit from government guaranteed loans will not be able to pay a dividend or consummate share buyback transactions between 27 March 2020 and 31 December 2020 (in such case late payment interests are applicable).
Supervising Authority
Bpifrance
Minister of Economy and Finance
Availability
From 25 March 2020, up to 31 December 2020 (included)
Bpifrance Unsecured Loans
Government Measure
Unsecured loans (i.e., no guarantee/collateral required) aiming at making up businesses’ cash flow shortfalls.
Prêt Atout1 (national):
- Duration: three to five years;
- Amount: from €50k to €5m (€15m for the French ETI) depending on the business’ size);
- Deferral of the reimbursement: up to 12 months.
Prêt Rebond (terms and conditions depend on each regional policy):
- Duration: seven
- Amount: from €10k to €300k;
- Deferral of the reimbursement: two years.
1Following the success of the Prêt Atout, it is possible that it will no longer be available or will be limited.
Eligibility
Prêt Atout:
All very small companies (French TPE), SMB2 and moderate size companies (French ETI3) conducting a business activity for at least 12 months except for:
- Civil Real-Estate Companies;
- Financial Intermediation Institutions;
- Real estate promotion and rental companies (entreprises de promotion et de locations immobilières);
- Farm Companies with an annual turnover > €750k;
- Distressed companies.
See here for more information about eligibility.
Prêt Rebond:
All SMB conducting a business activity for at least 12 months except for:
- Civil Real-Estate Companies;
- Financial Intermediation Institutions;
- Real estate promotion and rental companies (entreprises de promotion et de locations immobilières);
- Farm Companies with an annual turnover > €750k.
See here for more information about eligibility.
2A SMB (“Petite et Moyenne Entreprises”) is a French company which has: (i) fewer than 250 employees; and (ii) an annual turnover below €50m or an annual balance sheet below €43m.
3A ETI (“Entreprise de Taille Intermediaire”) is a French company which has: (i) fewer than 5,000 and (ii) an annual turnover below €1.5b or an annual balance sheet below €2b.
Supervising Authority
Bpifrance
Availability
From 2 March 2020
Bpifrance Loans Instalments Deferral
Government Measure
Automatic six-month instalment payment deferral for all existing loans granted by Bpifrance.
Eligibility
All companies which have taken out a Bpifrance loan prior to the COVID-19 epidemic.
Supervising Authority
Bpifrance
Availability
From 20 March 2020
Bpifrance Guarantee Schemes
Government Measure
- Cash Flow Guarantee Scheme (i.e., in order to maintain the company’s overall financial structure).
- Confirmed Credit Lines Scheme (i.e., short-term liquidity hardship).
Application on Bpifrance website.
Eligibility
Cash Flow Guarantee Scheme:
All very small businesses and SMB which meet one of the following requirements:
- Being part of group comprising < 250 employees;
- Workforce < 250 employees;
- Annual turnover < €50m.
See here for more information.
Confirmed Credit Lines Scheme: all SMB and moderate size businesses except for distressed companies.
See here for more information.
Supervising Authority
Bpifrance
Availability
From 2 March 2020
Credit Mediation (renegotiation of credit lines)
Government Measure
Public support to renegotiate a rescheduling of bank loans. If the filing is complete:
- financial institutions have 5 working days to review their positions;
- If the difficulties persist, the mediator acting on behalf of the Bank of France intervenes to assist resolving points of contention; and
- the mediator proposes a solution to the parties (directors, shareholders, creditors, etc.). Whilst the mediator’s proposition is not binding, parties must use best efforts to comply with the mediator’s recommendations.
Eligibility
All companies which, following negotiations with a bank or credit insurer, are unable to meet funding needs in the immediate term as a result of COVID-19 and/or suffering the aftermaths of a reduction in guarantees from a credit insurer.
May accept companies in amicable procedure, in safeguard or receivership, and exceptionally in compulsory liquidation.
See here for more information and application.
Supervising Authority
Bank of France
Availability
Until the end of the COVID-19 crisis.