Following from the impact COVID-19 is having on cashflow’s and treasury for SME’s, BPI France has launched this Monday 4th of May, in collaboration with the regions and the order of Chartered Accountants, a new measure: the Rebound flash loan» .
Who can benefit?
- SME’s who don’t belong to a group of more than 250 people and for which the turnover is less than 50 M€.
- The company needs to have been formed and trading for at least 12 months
- The shareholders must all be individual persons
- Excluded from the loan: SCI’s, Sole Traders (Entreprise individuelle), financial intermediaries, estate agents, companies in fishing with a NAF code 4638A or 0321Z, agricultural sector with a NAF code section A01 or A02 whose turnover is under 750 000 €, with the exception of those with NAF codes 02.20Z and 02.40Z (forestry)
- Note, each region retains the decision to implement the loan. It is possible some of these will chose not to implement it, or implement other solutions. For now only the regions of Ile-de-France and Auvergne-Rhône Alpes are proposing this.
How much and repayment terms?
The amount of the loan, which is fully digitalised, ranges from 10,000 to 50,000 euros
It has a 7 year terms of which 2 are interest only
What does it cover?
- Treasury needs relating to the current situation
- Working capital requirements
- Intangible investments: maintenance costs to be in norm (environment, security) Recruitment, prospection…
- Tangible investments of low value: Internal stock, IT equipment etc..
Loan requirements ?
- This loan benefits from state aid, and therefore is subject to the minimis conditions, which stipulates that a company can only receive de minimis aids adding up to 200k€ over a three year period. See more on de minimis
- An assurance on the loan for death or irreversible loss (PTIA) must be subscribed to
- Repayments are monthly capital repayment
Advantages?
- Interest rate is 0 % .
- Two years interest only (at 0%) allows for some breathing space before any repayment begins
- No Guarantees are requested from Management
- No bank fees for inception
- As a co-financing product, it can be aggregsted with the goverment backed loan (PGE) or with a bank loan for the same amount
How to apply?
- You can submit your request on the BPI site of your regions, it takes 15 minutes to complete
- Supporting documentation
- Director’s ID (Passeport, ID number, Carte de séjour)
- Shareholder with more than 25% voting rights ID
- Company’s bank details (RIB)
- Evidence from a partner bank’s proposal, if any
- Your Chartered Accountant then receives an email from BPI asking to confirm the financial information of your company and communicate your status, KBIS of less than three months and your last two company tax returns
- Sign your loan contract digitally and receive the funds automatically within 2 to 3 days,
- Access the form to request for the region Auvergne – Rhône Alpes
Note
- Only the director of the company can apply for this loan
- Only one loan per company
