More than two years after the establishment of the State-guaranteed loan (prêt garanti par l’Etat – PGE), its distribution ended on 30 June 2022. This is an opportunity for the FBF to take stock of this scheme which is unparalleled in both its form and the cooperation between public and private players, and to underline the engagement of French banks, for all their customers, particularly companies, whatever their size.
The State-guaranteed loan was set up in the emergency phase of the pandemic and was subsequently adapted to meet the changing health situation and the needs of companies. More than 75% of the total amount outstanding was issued by French banks in the first three months of the scheme’s implementation, between the end of March and the end of June 2020. As of 30 June 2022, there were more than 883,000 applications for State-guaranteed loans totalling €145.5 billion . Like all credit, these loans are granted responsibly, but the refusal rate has remained low and stable at 2.9%. It should be remembered that at the end of April 2022, more than €148 billion in State-guaranteed loans had been granted, all banks combined, to 678,240 companies .
With a year’s delay in capital amortisation and the possibility of an additional year’s delay, repayments of State-guaranteed loans have therefore, for the most part, started, without any significant difficulties at the macroeconomic level or by business sector. Indeed, at the end of 2021, out of 647,000 State-guaranteed loans representing 95% of the total, 11% were repaid in the first year. 72% chose to repay over 4 to 5 years, with 57% choosing to repay with an additional year’s delay in capital repayment.
Almost all customers who have taken out a State-guaranteed loan have therefore started to repay it. Banks are vigilant and attentive to their customers, and alerts are very limited to date.
As of this date, according to our FBF estimates, a quarter of the outstanding State-guaranteed loans have been repaid.
Business failures remain at a lower level than before 2020, and the support players, who have been strengthened by the crisis exit measures, are all very active in dealing with difficult situations together, as early as possible. Restructuring of State-guaranteed loans normally come up through credit mediation (or other amicable and legal proceedings) and are processed to find solutions (just over 300 since February 2022). The cash flow of companies is still satisfactory, against a backdrop of rising prices, difficult recruitment and a good pace of activity. According to the recent BPI France Le Lab business survey (July 2022), just over half of VSEs/SMEs have used most or all of their State-guaranteed loan, with only 6% fearing difficulties in repaying their State-guaranteed loan.
Business leaders are encouraged to turn to those whose job it is to support them, be they banks, accountants, consular networks, etc., if they are worried.
Proximity is a strength of the French banking model, which is interpersonal and proven. French banks work for all their customers.
 Based on aggregate indications from the 6 banks of the FBF Executive Committee
 State-guaranteed loan dashboard of the Ministry of the Economy and Finance, as at 30 April 2022 – based on BPI data processed by the Banque de France