Some support measures/ state aid for businesses are implemented by the French State due to the Corona crisis. Measures to support the granting of loans to companies, guaranteed by the State (BPI France):
On March 19th, he European Commission has adopted a Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the COVID-19 outbreak.
On this basis, the French state has adopted an emergency support plan for businesses: French State will mobilize more than 300 billion euros of liquidity support for companies affected by the economic impact of the Coronavirus outbreak.
On March 20th, the European Commission approved the French State aid schemes under the new State aid Temporary Framework.
Article 4 of the Amended Finance Act No. 2020-289 of March 23rd (loi n° 2020-289 du 23 mars 2020 de finances rectificative pour 2020) provides for an exceptional mechanism to support the granting of loans to companies, guaranteed by the State (through BPI France). The conditions are set by a decree of March 23rd of the Ministry of Economy and Finance.
These measures are:
>> A scheme to provide State guarantees to banks on portfolios of new loans for all types of companies.
This is direct aid to the companies that will enable banks to quickly provide liquidity to any company that needs it. This financing ensures that companies have the necessary cash to continue their activity and preserve jobs. It will be able to cover all new treasury loans granted from March 16th to December 31 th. They may not be subject to any other guarantee or security.
However, these loans may be granted only under the condition that the company was not encountering difficulties as of December 31st 2019 (leaning that the companies where not under the last 3 judicial procedures presented at Question 1 here above) These loans cover two possibilities: funding 25% of turnover or differing of one year for the recovery of the loan.
>> Two schemes enabling the French public investment bank, BPI France, to provide State guarantees on commercial loans and credit lines, respectively, for companies with up to 5,000 employees:
– For SMEs, unguaranteed loans over 3 to 5 years of 10,000 to 5 million euros with a significant postponement of the repayment term;
– For Midcaps, unguaranteed loans over 3 to 5 years of several tens of millions of euros with a significant postponement of the repayment term.
A solidarity fund is implemented by the French state, the French regions and some of the biggest French companies. This fund is dedicated to micro-enterprises and self-employed individuals with:
- a turnover of less than one million euros;
- a loss of turnover of more than 70 % in March 2020, compared to March 2019 or undergoing administrative closing;
- less than 10 employees.
This smallest eligible companies will benefit from this aid of 1 500 euros as of March 31st. The procedure to follow is to make a simple statement on the website of the Direction Générale des Finances Publiques (DGFiP).
The French Government announced on March 25th a new financing measure for the start up in total amount of 4 billion euros.
Social security contributions to be paid to the URSSAF have been automatically postponed for three months without the companies having to take any specific action. No penalty will be applied.
Corporate tax may be postponed at the demand of a company using the tax administration website.
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