A very humble start to stimulate equity lending

Considered difficult, these loans, aimed at strengthening the capital of companies, do not meet their needs.

Launched with great fanfare in the spring, the Equity Ownership Restart (PPR), a support system to help businesses bounce back, is struggling to find its audience. This loan, which is backed by a government guarantee, should enable healthy small and medium-sized enterprises (ETIs) to finance investment projects. The lifespan is eight years and subscribers don’t start returning it until the fourth year.

However, despite the commercial offensive of banks, only a few companies managed to seduce. Thus, from May 150 to 200 million euros have been allocated, mainly to medium-sized companies. In fact, the product is complex. It is equated to a quasi-equity, because its reimbursement has no priority over other debts. “Small and medium-sized business leaders often have difficulty understanding the benefits of a product, explains Germaine Simonot, President of the CPME Corporate Finance Commission. We will need to do

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