#2020-712Decree No. 2020-712 on Ad Hoc Aid for Companies Affected by COVID-19 and the Ukraine Crisis
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The decree provides financial assistance to small and medium enterprises (SMEs) in France impacted by COVID-19 and the Ukraine crisis, offering repayable advances and low-interest loans. It is targeted at SMEs unable to secure enough government-guaranteed loans to sustain operations. Companies must demonstrate recovery potential and are not in insolvency proceedings as of December 2019, though those under recovery plans are eligible.
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Key Changes
- Provides repayable advances and low-interest loans to French SMEs affected by COVID-19 and the Ukraine crisis
- Eligible SMEs must show recovery potential and not be in insolvency as of December 2019
- Applications are to be submitted to local enterprise financing committees
Obligations
What this law requires
All aid disbursements must occur by December 31, 2020
SMEs must submit aid applications to the departmental committee for examination of business financing problems (comité départemental d'examen des problèmes de financement des entreprises)
SMEs must demonstrate they have not obtained sufficient state-guaranteed loans under Article 6 of Law No. 2020-289 (March 23, 2020) to finance operations, including after credit mediator intervention if applicable
SMEs must provide evidence of realistic recovery prospects for their operations (justifier de perspectives réelles de redressement de l'exploitation)
SMEs must not be subject to collective insolvency proceedings under Books II, III, and IV of the French Commercial Code as of December 31, 2019, except those returned to good standing by a restructuring or recovery plan