375 million Grand Est participation loans to support companies

The first Grand Est Participatory Loans will soon be available in partner banks to finance business development projects in the region.

The project is in place. “We envisioned a system of equity loans to allow our regional companies to come back after the health crisis. Recent events, especially the energy crisis, make it even more urgent,” explained Jean Rottner, president of the Grand Est region, on the occasion of the signing of the agreement that triggered the implementation of the first participatory loans Great East.

On the occasion, the president of the region was surrounded by representatives of the partner banks, namely Alain Godard, managing director of the European Investment Fund (EIF), Bruno Deletré, chairman of the board of Caisse d’épargne Grand Est Europe , Thomas Dutot, director of specialized networks at Crédit Agricole Alsace Vosges, and Marc Thirion, director of the business network at Banque Populaire d’Alsace Lorraine Champagne.

Specifically, this system will allow the participating banks to use a provisional amount that could reach 375 million euros in long-term equity loans to VSEs and SMEs in the Grand Est region. These loans will benefit from the free guarantee, up to 80%, provided by the region through the European Investment Fund (EIF). The region will guarantee these loans, equated with “quasi equity”, that is, likely to strengthen the companies’ solvency, by investing up to 66.7 million euros.

So far, between 170 million and 250 million euros will be available in the coming months. Enough to finance growth or development projects in the medium and long term, up to a maximum of 500,000 euros, for around 2,000 companies.

For these long-term loans, the first repayments of the term are postponed by two years (maximum five years). On the interest side, the banks are obliged to stay below 3.5%. The eligibility criteria are those traditionally used by banks, namely the Banque de France rating. “To better support our companies and give them greater access to credit, we are also working on the financing of these rating processes”, concludes Jean Rottner.

Jean Jacques Manceau

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