November 28, 2021

Honor loans, essential tools for business creators

Posted on Nov 16, 2021, 2:24 PMUpdated Nov 16, 2021, 3:55 PM

The entrepreneurial dynamic in France is buoyant at the moment, the number of creations having broken records in 2020 to reach one million. “This is a fundamental trend, linked in part to the status of micro-entrepreneur and to the evolution of wage-earners in society”, Explain Marie Adeline-Peix, Executive Director in charge of regional partnerships, creation and territorial action at Bpifrance. “It is also the symptom of a search for meaning. The relationship to work has changed, people see entrepreneurship positively, as a chance for personal achievement. We were surprised to note, for example, that frequentation of the Bpifrance-Création.fr site – very useful for maturing your project – had increased by 30%, during confinement. However, our goal is not to turn everyone into an entrepreneur. What interests us is well-supported and well-funded creation, so that it is sustainable, creates added value and induces long-term jobs. “

Zero rate, no collateral required, deferred repayment… Flexible loans

This is where the Honor Loan comes in, which comes in three offers: Solidarity, Creation-Reprise and Renfort, depending on the nature of the project and the object of financing. Launched by Bpifrance, in partnership with support networks: Initiative France, Adie, France Active and Réseau Entreprendre, in addition to their own Honor Loans. Over the year 2022, Bpifrance will thus devote 120 million euros to the Creation-Reprise Honorary Loan, 60 million euros to Renfort and 50 million to Solidarity.

“The amount allocated by Bpifrance is very significant in terms of the amounts and the potential number of companies involved. As part of the Recovery Plan, we are able to triple the amount provided by the support network, and our ambition is to grant between 30,000 and 50,000 loans per year ”, specifies Marie Adeline-Peix.

These zero-interest loans, granted on a personal basis to project leaders supported by a network, help strengthen the company’s equity, secure financing plans, provide them with credibility and act as a lever to obtain a bank loan or even another loan of honor.

“It is a virtuous dynamic, which resolves the major problem with which all creators are confronted – that of financing – and in particular those in a situation of fragility vis-à-vis employment, to whom we provide the opportunity to embark on the adventure. thanks to the Solidarity Honor Loan. Financing your project correctly, with enough resources to make it viable in the medium term, that is to say to calibrate widely enough at the start to put all the chances on your side, is absolutely essential. We must let these creators know that simple devices, which do not jeopardize their heritage, exist to get started. “

From 1,000 to 80,000 euros… loans adapted to all needs

The Solidarity Honor Loan is one of the three products launched by Bpifrance. It is aimed in particular at job seekers, beneficiaries of social minima, recipients of assistance for returning to work, but also young people and residents of Priority Townships (QPV) … amount between 1,000 to 8,000 euros, without guarantee, at zero rate, for a period of 1 to 5 years and with adjustable amortization period between 0 and 6 months, it is conditional on obtaining a loan bank at least equivalent in amount and duration. “No one has to go through the cracks. The Solidarity Honor Loan is really dedicated to creators who have few resources. And if the project is very promising, nothing prevents combining two, Solidaire and Création-Reprise for example. “

The Creation-Takeover loan (from € 1,000 to € 80,000) is intended for all project leaders, in the context of a creation, development or takeover of a business. . Lasting seven years, it is tailor-made for those who have already received one or more Honor Loans from Initiative France or Réseau Entreprendre.

As for the Renfort Honor Loan (from 1,000 to 30,000 euros, for a period of seven years), it was tailor-made for young companies under the age of five slowed down in their growth by the arrival of the pandemic. “The Reinforcement is very specific, because it is linked to the crisis. It should be noted that an entrepreneur financed and supported by a support network has a three-year sustainability rate of 70 to 80%, against 50% for the others. But the Covid-19 has changed the situation. “ The confinement has indeed broken the wings of young companies under the age of five who had not yet found their cruising speed, including those already taken in hand by a support network. The Renfort loan therefore gives the networks the possibility of reinjecting equity capital to strengthen the companies weakened during this period. It will also make it possible to take over from the various measures put in place by the State to support the economy, which will soon come to an end. “At the same time, the recovery requires cash, cash and equity, to restart the machine – to rebuild stocks for example – knowing that debt levels are already very high. At this stage, the Renfort Honor Loan will prove to be invaluable. “

A communication campaign as close as possible to project leaders

The objective today is to make these three products known to all business creators and buyers by actively communicating. No one should go under the radar, including QPV entrepreneurs who do not always have the contacts likely to refer them. And this is the whole purpose of the communication campaign that has just been launched by Bpifrance in the regional daily press and on social networks, in the closest possible proximity to the local branches of Initiative France, France Active, of Adie and the Entreprendre Network. “Too many people do not know enough about existing systems or do not have the reflex to ask for them. There is a lot of pedagogy to do, remember that it is a zero rate loan, that no collateral is required, that it does not engage its personal assets and is really based on the confidence that we place in the business project. “

Photo caption

Marie Adeline-Peix, Executive Director in charge of regional partnerships and territorial action at Bpifrance.

Photo credit ©Bpifrance