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State guaranteed loans: how to repay them?



Many companies have used secured loans by the state. Now, it is their reimbursement that is the problem. To avoid the crash, companies were able to postpone their first deadlines by one year. But that might not be enough. According to the Banque de France, 4.5 to 6% of them may not honor their debts. The State is therefore considering transforming this guaranteed loan into a direct subsidy in certain cases. In other words: the company would have nothing more to reimburse.

This is the case of a company in events, mentioned by France 2. Its activity is still at a standstill and employees on partial unemployment. In total, turnover has fallen by 60% in one year. So, the Breton company had to borrow 1,250,000 euros to keep up, with the help of two loans guaranteed by the State. The boss should have started paying them back already. But without cash flow, that’s impossible at the moment. It therefore relies on this possible state measure. But system can only be implemented if it is validated by the European Commission.

The JT

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