a concrete solution for companies’ future projects – Remiremontvallées.com

This Tuesday, October 4, 2022, Jean Rottner, President of the Grand Est Region, Alain Godard, Managing Director of the European Investment Fund, Bruno Deletré, Chairman of the Board of Caisse d’Epargne Grand Est Europe, Thomas Dutot, Director of Networks Crédit Agricole Alsace Vosges and Marc Thirion, director of the Business Network for Banque Populaire d’Alsace Lorraine Champagne, signed an agreement that triggered the implementation of the first Grand Est Participatory Loans. It is a concrete financing solution that gives companies access to a long-term financial resource to carry out their development projects and foresee a more sustainable future.

It was within the framework of the Grand Est Business Act that the creation of a guarantee fund was decided. At a time when the health crisis and its consequences have had a heavy burden on the activity of companies in the Grand Est, the region has encouraged the creation of these loans, which are equated with “quasi equity” by investing in them up to 66.7 million euros .

This system allows the participating banks to apply a preliminary amount that could reach 375 million euros in long-term equity loans for the benefit of VSEs and SMEs in the area, while benefiting from the free guarantee of the region via the European Development Fund. EIF).

This commitment is a crucial step in the mobilization of capital for confidence and growth for regional companies. In this, it makes it possible to effectively accelerate the recovery of the economy and employment in the area. In consultation with the French banking association of the Grand East, these loans are distributed in bank branches and business centers and are granted by the banks supported according to jointly constructed specifications.

“This fund was built together with the banking sector and is a concrete response to the growth needs of small and medium-sized companies. Despite a still uncertain context, this financing mechanism should allow our companies to foresee a calmer future. Today and more than ever, it is our duty and our responsibility to help them find accessible and long-term solutions!” said Jean Rottner.

Through its managing director, Alain Godard, the FEI states: “This partnership not only represents a first cooperation between the FEI and the region, but it is also and above all a matter of offering entrepreneurs in the Grand Est the best possible conditions. financing their productive recovery investments”.

The loans are thus intended to finance a growth or development project after Covid-19. They offer a grace period of at least two years and a minimum term of seven years.

The financing amount is limited to 500,000 euros, and the interest rate does not exceed 3.5% or Euribor + 4%1. The Grand Est Participatory Loans system appears to be very complementary to the measures taken by the state, such as “Resilience” state-guaranteed loans or recovery loans and bonds, which aim to meet companies with more financial needs.

A call for expressions of interest was notably launched in 2021 with all banking institutions. Among the banks that have responded, Caisse d’Epargne Grand Est Europe, Crédit Agricole and Banque Populaire Alsace Lorraine Champagne can from today deposit a first installment of between 170 million euros and 250 million euros over a total framework of up to 375 million Euro . 1 The Euribor interest rate is a benchmark index for the money market in the euro area. This is the average rate that European banks charge to lend money to each other. The rate for Grand Est Participatory Loans is indexed to changes in the Euribor interest rate.

In the current context, companies in the Region will benefit from guaranteed financing of up to 80% on attractive terms.

“Caisse d’Epargne Grand Est Europe, true to its historical utility values ​​and its role in supporting economic actors in the Grand Est region, is very pleased to join hands with the region on the launch of the Grand Est participation loan. , specially designed by the region with banking actors,” says Bruno Deletré, Chairman of the Board of Caisse d’Epargne Grand Est Europe. “In a complex macroeconomic environment, Caisse d’Epargne Grand Est Europe also underlines the interest in this system, which will help support companies and professionals in the region to finance their growth projects”, he clarifies.

“Our DNA as a cooperative bank is to support the regional economy and support our customers in their development. We are proud to be today the Grand Est region’s partner for the distribution of the “Grand Est Participative Loan” for small and medium-sized companies. This tool, perfectly adapted to the current context, will allow them to continue their growth, especially with reduced reimbursement costs in the first years. said Marc Thirion, Director of Corporate Network and Specialized Financing at Banque Populaire Alsace Lorraine Champagne.

“As the leading financier in the French economy, Crédit Agricole supports all its clients, and in particular companies of all sizes in their development. As part of the recovery, Grand Est Regional Banks remains mobilized with the region to support companies affected by the current context to help them create the conditions for their recovery,” emphasizes Gérald Grégoire, CEO of Crédit Agricole Alsace-Vosges. “Our common goal: to support the economic development of the territory. This regional equity loan system will help finance the growth of companies with potential in the region by strengthening their financial structure. It will be the fuel for a restart or even a faster development of companies.

The co-construction, with the region and the EIF, of this system based on a principle of joint effort and support, will make this relaunch a success,” he says.

Leave a Comment