More and more initiatives are being taken to help companies affected by the health crisis to strengthen their capital base. The stimulus package announced by the French government should encourage regional initiatives. The plan provides for 250 million euros to be allocated to regional funds aimed at bolstering the equity capital of companies with the potential to bounce back. See details.
Grand Est: help to pay rent for businesses closed during the containment period
Among recent initiatives, the Grand Est regional council has strengthened its Resistance Fund for companies affected by the second containment. Specifically, companies forced to cease operations between November 2020 and January 2021 can now benefit from assistance to pay their rent. The amount of assistance can be up to 1,000 euros per month, or a maximum of 3,000 euros for 3 months of closure. Only companies with fewer than 5 employees and annual sales of less than 350,000 euros are eligible.
In total, the Grand Est Region has earmarked a budget of 5 million euros. Companies wishing to take advantage of this rental payment assistance can apply online via the regional council's website.
Normandy: a fund for SMEs weakened by the crisis
The President of the Normandy Region, Hervé Morin, has announced the launch of the Normandie Rebond fund, which aims to strengthen the equity capital of regional SMEs and ETIs headquartered or with significant activity in the region. The aim is to invest in 8 to 15 companies, with investment tickets ranging from €1 to €3 million. "To be supported, companies will need to be dynamic and responsive but undercapitalized and with insufficient profitability," reads the press release published on October 30, 2020.
Occitanie: extended aid to "get through the recovery phase".
The Occitanie Region has chosen a different path by extending the business support measures put in place during the first wave of Covid-19. The OCCAL aid scheme, set up in June to support the tourism sector, local shops and craftsmen, has been modified. Establishments with fewer than 10 employees subject to administrative closure can, for example, apply to have one month's rent paid (up to a maximum of 1,000 euros). Non-repayable cash advances are available for micro-businesses, SMEs and associations. These are capped at 25,000 euros, up to a maximum of half the cash requirement.
So, while the regions are multiplying aid for companies financially weakened by the health crisis, few of them are deciding to directly enter the capital of commercial companies, an operation that has nevertheless been authorized since the implementation of the NOTRe law in August 2015.