The Growth Loan is a response to the difficulties encountered by VSE and SME managers in obtaining loans of less than €50,000 from banks. Who can benefit from this scheme? How do you apply? Here are the answers.
Facilitating intangible investments by very small businesses
Regional authorities are often limited in their support for small businesses. To help them finance their investments, they can now offer growth loans. The "Croissance TPE" loan offer is issued in partnership with Bpifrance, with financial support from the French government, for amounts of between €10,000 and €50,000, with no guarantee or personal surety required.
The TPE growth loan can be used to finance intangible investments (compliance with standards, digitalization, security, recruitment and training, prospecting costs, etc.) or tangible investments with a low collateral value (IT equipment, fitting-out work, increase in working capital requirements generated by a development project, etc.). The maximum loan term is 5 years.
VSE growth loan: eligibility requirements and application procedures
To qualify for a prêt croissance TPE, a company with between 3 and 50 employees must have been established for more than 3 years in the region offering the loan, and be seeking financing for its development project. To enable Bpifrance and the region concerned to examine the loan application, the "de minimis" aid form must be returned, along with several supporting documents:
- A K-bis extract less than 3 months old;
- Company bylaws ;
- The last two tax returns;
- Valid identification ;
- A copy of a bank loan agreement less than 6 months old for an amount at least equal to that of the loan requested, or a certificate of equity or quasi-equity provided by the chartered accountant.
Additional documents may be required prior to the decision.
Who offers the VSE growth loan?
The scheme is due to be rolled out nationwide during 2021 as part of the Recovery Plan. However, several regions are already offering it. The Occitanie/Pyrénées-Méditerranée region, for example, has a number of special features. It is a 5-year medium-term loan backed by a bank loan, a quasi-equity contribution or an equivalent amount of participatory financing. Amounts range from 10,000 to 50,000 euros, with a one-year grace period.
The Île-de-France region is also committed to supporting the creation and growth of businesses in the region. This commitment translates into increased support for very small businesses with strong growth potential, but which are unable to obtain the necessary financing. The TPE growth loan offered by the region is designed to facilitate access to credit for small businesses. It is not intended to finance financial restructuring or transfer operations, but only tangible investments with a low collateral value, or intangible investments.
Other regions, such as Brittany, New Aquitaine, Normandy and Guadeloupe, have made this financing available.