On 4 March, the terms of the Stimulus equity loans were presented. These loans were jointly developed by the State, French banks and investors, notably insurers. These Stimulus equity loans are an original tool for companies with development projects that require boosting their balance sheet. They will be available from the start of May 2021 in the banking networks. This scheme, involving banks and investors, with a State guarantee, is based on a balanced calibration for the stakeholders while remaining simple for the companies.
This financing instrument, which is exceptional and available until the end of June 2022, has been specially designed to enable SMEs and Mid-cap companies SMEs1 with a turnover of €2 million or more and Mid-caps of all sizes to consolidate their balance sheets in order to find investment capacity and the means to finance their projects. This support scheme will represent an alternative for companies that do not have access to market instruments and do not wish to change their governance, and this at an attractive cost for companies thanks in particular to the State guarantee.
Through this initiative, these businesses will be able to enjoy enhanced domestic growth, improve their future competitiveness, and participate in the recovery of the French economy as they forge ahead with their digital and ecological transformation.
Business owners can contact their bank advisors to access this product that boosts the balance sheet. Banks are thus reaffirming their full commitment to providing appropriate financing solutions to meet the needs of businesses.
The Stimulus equity loan will also make it possible to mobilise part of long-term savings through investors subscribing to the fund.
For Philippe Brassac, Chairman of the FBF: “Since the beginning of the health crisis, French banks have been supporting their customers, particularly SMEs and Mid–caps. The Stimulus equity loans once again underline the commitment of French banks and the mobilisation of their local networks to help revive the economy. In the context of a health crisis impacting companies, the possibility of strengthening the structure of balance sheets is essential. With the involvement of the State and investors, this scheme is based on a principle of shared efforts and support for companies and between companies, which will make the recovery a success.“
Bruno Le Maire states: “This first raising of €11 billion from institutional investors marks the start of the Stimulus equity loans, a flagship and unprecedented measure of France‘s stimulus package to support business investment. I know I can count on the full commitment of the banks to distribute these loans to SMEs and Mid–cap companies in France.”
1 SMEs with a turnover of €2 million or more and Mid-caps of all sizes
FBF Press release – Launch of the Stimulus Equity Loans – A tool to help the recovery by investing in SMEs and Mid-cap companies