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Maintenance of repayable advances and loans at subsidized rates

As a reminder, in June 2020, the government set up aid mechanisms in the form of repayable advances and loans at subsidized rates in order to meet the cash flow and investment needs of companies weakened by the health crisis in Covid-19.

This device, which was initially scheduled to last until December 31, 2020, was extended until June 30, 2021 by a decree of December 23, 2020, granting preferential treatment to companies in the most affected sectors.

This aid concerns small and medium-sized enterprises (excluding micro-enterprises) and intermediate-sized establishments which meet the following conditions:
– not having obtained a bank loan guaranteed by the State,
– justify real prospects for recovery
– not be the subject of a safeguard or recovery procedure (except in cases where a safeguard or recovery plan has been drawn up)

In addition, the amount of aid is limited:
– for companies created on or after January 1, 2019, the payroll in France estimated over the first two years of activity;
– for companies created before January 1, 25% of the turnover excluding tax for 2019 noted or, where applicable, for the last available financial year; exceptionally, for innovative companies, if the following criterion is more favorable to them, the aid can go up to twice the wage bill recorded in France in 2019 or, where applicable, during the last year available.

The decree specifies that up to € 800,000, aid takes the form of a repayable advance (repayable over ten years) or a subsidized loan (repayable over six years) which is a novelty compared to the scheme. previous.

This preferential regime concerns companies that meet the following conditions:

– be eligible for the solidarity fund
– carry out a main activity in a sector particularly affected by the health crisis
– have suffered a loss of turnover of at least 50% over the year 2020:

Finally, the terms of application for assistance remain unchanged, the request must be sent to the departmental committee for the examination of business financing problems (Codefi).

Consult the summary of measures for companies impacted by Covid-19.

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