Background information

To support the cash flow of businesses affected by the economic consequences of the war in Ukraine, the government has modified the state-guaranteed loan scheme (PGE) introduced in March 2020, at the beginning of the health crisis (see State-guaranteed treasury loans . This is now part of the economic and social resilience plan presented on 16 March. This new scheme was implemented on 8 April 2022, with the publication of a Ministerial Order.

Content of measure

The resilience loan (PGE resilience) allows for the coverage of up to 15% of the average annual turnover over the last three years, so that companies can face up to their possible cash flow difficulties.

The PGE resilience complements the PGE introduced during the health crisis, which allows a company to take on debt up to 25% of its turnover. This scheme remains available until 30 June 2022.

Companies eligible for the PGE resilience will have to certify to their bank, on a declarative basis, that their cash flow is penalised, directly or indirectly, by the economic consequences of the conflict in Ukraine. The PGE resilience is open to all companies, regardless of their legal form, size or sector of activity. Each application will be examined on a case-by-case basis according to the company's financial situation and its need for financing.

All applications can be sent by eligible companies to their bank from 8 April. The PGE resilience will be available until at least the end of June 2022. Should the need be confirmed, it may be extended by a finance law until 31 December 2022.

Beneficiaries of the PGE resilience will be able to choose the rules for repayment and amortization of their loan, according to the same modalities as for the PGE set up in the context of the health crisis. The main banking networks have also confirmed their commitment to offer this new PGE at cost price for the entire duration of the loan.

Use of measure

New measure, no data yet.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	Companies National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Consulted
Form	Not applicable	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

No specific involvement.

Views and reactions

The measure has been welcomed by MEDEF, the main employers' organsation.

Sources

• 07 April 2022: Arrêté du 7 avril 2022 portant modification de l'arrêté du 23 mars 2020 accordant la garantie de l'Etat aux établissements de crédit et sociétés de financement en application de l'article 6 de la loi n° 2020-289 de finances rectificative pour 2020 (www.legifrance.gouv.fr)
• 07 April 2022: FAQ Prêt garanti par l’État Quelles démarches pour en bénéficier ? (see question 56 and 57) (www.economie.gouv.fr)
• 14 January 2024: Prêt garanti par l'État (PGE) et PGE Résilience (entreprendre.service-public.fr)
• 10 December 2024: Prêt garanti par l’État (www.economie.gouv.fr)