Temporary closure, partial unemployment. The health crisis has weakened many companies financially. For them, state-guaranteed loans (PGE) were a breath of fresh air or security in the event of a heavy blow.
“My company was not in debt before the crisis, but I had to address the structural needs of my structure.” Pierre (first name changed), construction professional. Its pre-Covid-19 cash allowed it to avoid debt, “but with the crisis, it melted like snow in the sun and dried up completely.”
excellent Wage employment is rising and unemployment is declining in Nevers
He has put his employees in partial unemployment, just two months into the two-year crisis, “but we’re no longer producing, so I don’t have cash flow anymore.” So he decided to take two PGEs worth 100,000 euros each. “I had to pay a fee, the fee which I made sure to honor every quarter and PGE allowed me to do so.”
If he was able to get through the crisis without much damage, another came to seriously disrupt his activity. We are experiencing an increase in the cost of raw materials by 30 to 50% for some and fuel. My margins are negative. When I bought at 8 to sell at 10, today I buy at 12 but I sell at 10 to the customer.” During this time, you have to pay off two PGEs, €1,000 per month for one, and €700 for the other. Two PGEs that he used up completely.” My salary, in particular, but at the moment, I have no difficulty paying it off. »
Jean Marc (first name changed), a professional in the hotel and restaurant industry. “From the beginning, I got a PGE of €450,000. It was security because on March 14, 2020 at 8pm, when we were forced to close the restaurant, we were going into the unknown. On March 18, we closed the hotel because we had too many reservations and too many cancellations” .
If he does not take 1 euro out of 450 thousand euros, then, of course, he must repay this loan. It costs 4,200 euros per month. “50% was in 2021 and the rest, from last May, is spread over four years,” the professional specifies.
excellent In the face of inflation, the puzzle of Nivernaise companies to cut gas, electricity and fuel bills
In concrete terms, he paid off 250 thousand euros last year. However, do not complain. We have been a very subsidized sector, especially with the Solidarity Fund, Partial Unemployment and Orsaf fee waiver. »
His cash flow is good, but he is considering deferring restoration work on his foundation for a year, which is the work he does every ten years. He could afford it, because with the crisis, his rooms were “less tired because they are less busy”.
Restructure your loan guaranteed by the state
A company that has received a loan with a state guarantee can request its restructuring under certain conditions. In June, in Nevers, 1,778 companies, including 1,579 VSEs, benefited from PGE. Total amount paid: 234.8 million euros. 23% of these companies work in the parking garage sector, 15% in the hotel and restaurant sector, 14% in construction and 6% in agriculture and forestry.
Spread your debt
If 20% of these loans have already been repaid, then some companies may, under certain conditions, ask for their loan to be restructured. “This measure has been put in place especially for small and medium-sized enterprises,” outlines Marie-Daine, managing director of the Banque de France. “These are PGEs of less than 50,000 euros which they cannot pay this year.”
These companies in particular must provide certification from a chartered accountant showing that the company cannot meet deadlines, but has business and financial prospects capable of ensuring its sustainability. This certification takes into account all of the company’s tax and Social Security debts, with a one-year forecast. All these items are also reported to his bank. The repayment can then be spread over eight years, or even, exceptionally, over ten years.
For PGE companies worth more than 50,000 euros, the beneficiary companies can benefit from the same restructuring mechanism. Hence, their entry point is the Crisis Resolution Adviser in the department at the Public Finance Administrative Directorate. Like any loan restructuring, banks classify it as “non-performing”. So it will be more complicated for them, in the following years, to negotiate new financing. It was announced to the Banque de France and this could have an impact on the rating of those with a turnover of over €750,000. It’s not for small businesses.
On the part of the Commercial Court, its president, Patrick Mercier, does not currently have “problems with the EMP”. All in all, compared to the same period in 2019, “we have roughly the same number of open group actions. But we are vigilant to go back to school in September.” Faced with this danger, the president remembers that his court has a protective unit that makes it possible to support the company, without value judgment. Interviews are individual and confidential.