The government issued a decree that allows for cash advances to SMES that have been weakened by the crisis of the Covid-19, according to the decree of application of the draft amending finance act published Saturday in the official journal. The measure is aimed at companies who have not been able to benefit from loans guaranteed by the State (PGE), solvent, and presenting “real prospects of recovery”, according to the decree consulted by the AFP.
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The amount of aid is limited, for businesses created after January 1, 2019 “to the payroll in France estimated over the first two years of activity” and for the companies that were created before January 1, 2019, at 25% of the turnover, excluding taxes, 2019″, or “up to two times the wage bill recorded in France in 2019”.
This assistance, subject to a ceiling of € 800,000, “takes the form of a repayable advance, which the depreciation period is limited to ten years, including a grace period on capital limited to three years”, adds the text. Finally, the conditions for the allocation of these cash flows are evaluated by the ministry of the Economy, “following the advice of the departmental committee of examination of the problems of financing of companies”.
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