Who can benefit from the Stimulus equity loans?
Companies with the following characteristics can apply for a Stimulus equity loan:
What are the characteristics of the Stimulus equity loan?
Stimulus equity loans are intended to finance investment.
They have a maturity of 8 years and 4-year deferred repayment. The minimum amount is €200,000, but it can go up to €100 million.
They thus make it possible to boost the company’s balance sheet, without modifying its capital or governance.
How is the amount of a Stimulus equity loan that a company can take out calculated?
The Stimulus equity loan can represent 12.5% of the annual turnover for an SME or 8.4% for a Mid-cap.
A company that has taken out a state-guaranteed loan can also apply for an equity loan. If the overall common upper limit of 25% of annual turnover is exceeded, the maximum Stimulus equity loan amount is then set at:
What is the cost of a Stimulus equity loan?
This scheme for boosting long-term financing has been designed in such a way as to present an attractive cost for companies, thanks in particular to the State guarantee (remunerated at 0.9% for SMEs and 1.8% for Mid-cap companies).
The rate will be set by each bank.
How to obtain a Stimulus equity loan? Who to contact?
Banks will distribute equity loans from the start of May 2021 until 30 June 2022. Companies can contact their bank advisors for this purpose.
Banks are the company’s contact for the entire duration of the financing.
How does the scheme and the state guarantee work between banks and investors?
Banks keep 10% of the debt on their balance sheets and sell 90% to a fund of investors, to which insurers subscribe in particular. The State provides a guarantee for up to 30% of the investment fund, but not for the 10% share of the equity loans carried solely by the banks.
Under the Stimulus Plan, the Stimulus equity loans are part (with the Stimulus Bonds) of an overall scheme that can go up to €20 billion. To date, €12.2 billion in Stimulus equity loans has already been financed (with €11 billion subscribed by investors).