Participative loan Relaunch: A witness to the recovery?<

As early as March 2021, the Ministry of the Economy already evoked the Participative Relance (PPR) loans, a tool which is part of the more global approach to support companies, which also includes the tax measures of theFinance law for 2021 - in particular the reduction in production taxes - that the label revives, the action of Bpifrance and the initiatives of the regions.He was finally launched on April 26.

"Investment is the essential challenge of revival.We offer companies a tool to restart quickly and strong.Participatory loans and revival obligations are simple, attractive, powerful instruments, which leave great freedom to the business manager.Thanks to the guarantee of the State and the commitment of banks, investors and management companies, they perfectly meet the needs of SMEs and ETIs who wish to invest, innovate, develop.We thus give ourselves the means of a strong and lasting recovery of the economy, "explained the Minister of the Economy, Finance and Relaunch Bruno Le Maire during the presentation of the PPR.

A story that dates back to the late 1970s

A mechanism that already exists: the history of the participative loan dates back to the late 1970s when this device, essentially intended for businesses, was introduced by the law of July 13, 1978.According to the Dalloz, the participative loan is analyzed as an intermediate means of financing between the long -term loan and the acquisition of equity.

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"Originally, the reimbursement of the participatory loan is subject to the full reimbursement by the borrower of all his other banking claims (the debt is then called" subordinate ").He does not confer any voting rights to the lender and it is granted for the service of a fixed interest, generally increased by a participation in net profit of the borrower, "we can read in a note from the Banque de France consecratedto this tool.

Prepare the recovery

Bercy evokes overall funding of € 20 billion "massive" while SMEs and ETIs invest around 100 billion € in a "normal" year.It therefore relies on a training effect for an attractive system.

"Maturity will be eight years, which corresponds to long funding that makes it possible to envisage hires, development, consolidation, research, innovation, the opening of new production lines, transformationIn depth of SMEs and ETIs which will have access to these devices, "added the Minister of the Economy.The rest of this article is reserved for our subscribers.

File produced by Julien Thibert and Jacques Donnay