Everything you need to know about the Government Guaranteed Loan (GGL)

Everything you need to know about the Government Guaranteed Loan (GGL)

Who can benefit from the GGL?

All businesses of all sizes, regardless of the business legal form, having an economic activity in particular: companies, traders, farmers, professionals and micro-entrepreneurs.

Exclusions: Property Investment Company, holding company without activity or LBO, financing companies

How can you benefit from the GGL?

  • Contact your regular bank advisor.
  • Submit a justified request assessing cash requirements only related to the context of Covid-19.
  • After analyzing the eligibility criteria, you will get a pre-agreement from your bank.
  • Connect to the Bpifrance platform to get a unique identifier to pass on to your bank.
  • With the confirmation of the ID by Bpifrance, the bank grants you the loan.
  • If you have a problem, you can contact Bpifrance at: supportentreprise-attestation-pge@bpifrance.fr

What is the loan cap?

  • The maximum value of the loan is 25% of your annual turnover.
  • For companies created as of January 1st, 2019: the loan cap represents the value of the wage bill in France estimated over the first two years of activity.
  • For innovative companies: if the following criterion is more favourable to them, they can retain up to 2 times the value of the wage bill in France 2019.
  • You can take out several loans within the limit until the December 31st, 2020 grant deadline.

What are the conditions for obtaining?

  • Your need for cash flow should be related only to the Covid-19 economic situation.
  • Your business profitability should allow the repayment of the bank loan.
  • The equity in your structure must be positive, except in special cases.
  • You must not be subject to collective proceedings.

How long is the loan?

  • A one-year amortization deferral.
  • At the end of these 12 months, decision of an early repayment (partial or total) and amortization of the remaining loan of 1 to 5 years.

What is the loan guarantee and the rate?

  • Government guarantee of 70 to 90% depending on the company size.
  • Government guarantee cost of 0.5 to 2% of the loan.
  • Loan cost: each bank's own interest rate.

To accompany you in your procedure, find: