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A deferral of 12 additional months for the LégiFiscal EMPs

During a speech by the Minister of the Economy, Thursday, December 14, several announcements of importance were made to support companies during this health crisis including the one-year extension of the deferred payment of the EMP.

The success of the EMP ¶

The loans guaranteed by the State, implemented as of the spring confinement of 2020, constitute one of the essential support systems for businesses along with the Solidarity Fund. This system, open to all companies, whatever their size, legal form or tax regime, has a budget of 300 billion euros.

Companies in difficulty thus have until June 30, 2021 to apply for this loan from traditional banking partners. The level of state guarantee depends on turnover and is managed by Bpifrance:

Criteria

Level the warranty

Turnover> 5 billion

70%

Turnover between 1.5 billion

80%

Turnover <1.5 billion and workforce <5,000 employees

90%

The loan amount can reach 3 months of 2019 turnover or 2 years of payroll for innovative companies or companies created since 1is January 2019.

This loan is characterized by a deferred repayment of 12 months the first year. Two to four months before the anniversary date, the company may decide to either repay the capital in full, or to amortize the loan over a maximum of 5 years, or even to mix these two solutions.

In addition, the Government announced the success of negotiations with the banking sector in order to limit the interest rate between 1% and 2.5%.

An announcement without real surprise ¶

During his speech on January 14, 2021, just after the announcement of the curfew at 6 p.m. since Saturday, the Minister of the Economy raised the possibility of postponing the first annuity which expires next March for 12 additional months. .

This option is not a real novelty since it was already mentioned of such a postponement on option during an interministerial press conference held at the end of October.

Source :

https://www.economie.gouv.fr/covid19-soutien-entreprises/pret-garanti-par-letat#:~:text=Le%20pr%C3%AAt%20garanti%20par%20l,hauteur%20de%20300%20milliards%20%E2%82%AC

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