Entrepreneur PGE Resilience: up to 15% of turnover

PGE Resilience: up to 15% of turnover

To help companies cope with the shock of the war in Ukraine and its consequences on the economy, the government has decided to open the floodgates further. Three days before the first round of the presidential elections, the Ministry of Economy and Finance formalized, this Thursday, April 7, 2022, the launch of the new loan guaranteed by the State (PGE), called “PGE Resilience”, announced in as part of the resilience plan on March 16.

This new PGE will allow a company to borrow up to 15% of its average annual turnover, calculated over the last three years, and not 10% contrary to what was said last month. This amount may be added to the 25% ceiling of the “classic” PGE, which was launched in March 2020.

“The nature of the shock is more asymmetrical than that due to the pandemic. Some companies can currently face a very sharp increase in their costs, in particular in energy or raw materials, ”we justify on the side of Bercy, where it is specified that the amount of the loan has been discussed with the federations. sectors, banks and the European Commission. “We were a little cautious three weeks ago,” admits a source at the Ministry of the Economy.

Subscription deadline: June 30, 2022

For companies that have not taken out a PGE since the start of the Covid health crisis, it will be possible, in theory, to borrow up to 40% of their turnover from their bank. A ministerial decree must be published this Friday, April 8, and the banks will be able to distribute these new EMPs in stride.

However, the terms of reimbursement remain unchanged. Like a classic PGE, the amortization period is six years, and no repayment will be required during the first year.

The granting of this new loan can only be made until June 30, 2022. The imminence of the presidential and legislative elections prevents the adoption of a new finance law making it possible to extend its availability until the end of the year. ‘year.

With this “PGE Resilience”, the government is not targeting any sector in particular. All companies can apply for it. The discussion will be done on a case-by-case basis with the banks. The company must certify, on a declarative basis, that the economic consequences of the war have a strong impact on its activity.

Caution on corporate debt

It remains to be seen whether demand will be met. At the Ministry of Economy and Finance, we do not risk making forecasts, even if we recognize that the needs will obviously be much lower than during the pandemic. “This PGE Resilience demonstrates our common desire to continue to support our economy, and to seek appropriate solutions for each situation,” said Nicolas Théry, President of the French Banking Federation (FBF).

Behind the scenes, however, some bankers are measured. “We do not see companies jostling at the counter”, testifies a banking source, recalling “the responsibility of banks not to indebt companies more than reason”.

To date, 700,000 companies have used PGEs, for a total outstanding amount of 147 billion euros. Slightly more than half of borrowers will begin settling their maturities this spring.

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