Cedric O announces €4 billion emergency plan for startups
France’s digital minsiter has announced a €4 billion support plan for start-ups in the wake of the coronavirus outbreak
25 March 2020
In response to the unprecedented health crisis affecting France and its economic consequences on our companies, the Government is taking strong action to ensure the continuity of economic activity and the sustainability of companies and jobs.
The Ministry of State for Digital Affairs, Cedric O, the General Secretary
for Investment and Bpifrance, the French public investment bank, are joining forces to provide a specific support for French startups.
The French tech ecosystem has experienced a strong acceleration in recent years. However, many startups are still vulnerable SMEs due to their development model, based on substantial investments, strong growth, an ability to generate profit only after several years of operation, and a positioning on innovative products and services.
The measures taken are in addition to those already available to all companies and include:
- An €80 million package to finance bridges between two fund-raising rounds
- State-guaranteed treasury loans of up to twice the 2019 wage bill for France or, if higher, 25% of the annual revenue
- An accelerated refund by the State of corporate tax credits refundable in 2020, including the research tax credit (CIR) for the year 2019, and VAT credits
- An accelerated payment of the PIA innovation support grants already allocated but not yet released
- €1.3 billion of grants, repayable advances, loans, etc
To download the full press release click here.