Economy: measures to help SMEs avoid bankruptcy

Economy: measures to help SMEs avoid bankruptcy

Hard hit by the health crisis, many small and medium-sized enterprises (SMEs) are at risk of going bankrupt. The government wants to help them avoid this outcome.

Economy: What measures to help SMEs avoid bankruptcy?

While business failures are expected to increase by 21% by 2021, the government has decided to beef up its support for small and medium-sized enterprises (SMEs) with new tools, such as equity loans. The government’s objective is to collect 20 billion euros to help sectors in difficulty, such as tourism. “The tourist part is completely at a standstill, some coaches have not driven for several months”, breathes the co-manager of a transport company.

“Relance Label”, mediators …

The government wants to mobilize unproductive household savings for the benefit of businesses thanks to the newly created “Label Relance”. Funds invested in unlisted companies may benefit from a guarantee from the Public Investment Bank of up to one billion euros. Finally, to remedy payment delays, the Ministry of Finance is considering setting up sector-by-sector mediators.