War in Ukraine
The PGE Resilience is designed to help the companies most affected by the consequences of the war in Ukraine. This state-guaranteed loan, which is scheduled to run until the end of June 2022, could be extended by an amending finance law until December 31, 2022, if the need is confirmed, in accordance with the European Commission's temporary Ukraine framework.
Up to 15% of the average annual turnover of the last three years covered
The PGE scheme has been strengthened to support the cash flow of companies affected by the economic consequences of the war in Ukraine, and suffering for example:
- of rising energy prices;
- the increase in the price of raw materials;
- the breakdown of supply chains with suppliers;
- Suspension of payments from Russia or Ukraine...
The new component of the scheme is part of the economic and social resilience plan presented in mid-March 2022. The PGE Resilience covers up to 15% of the average annual turnover of the last three years, so that companies can cope with possible cash flow difficulties. This can be used in addition to the EMP set up during the health crisis. As a reminder, the initial version of this loan (available until June 30, 2022) allows a company to borrow up to 25% of its turnover.
Eligibility on a case-by-case basis
In order to benefit from this program, companies must certify to their bank, on a declarative basis, that their cash flow has been penalized, directly or indirectly, by the economic consequences of the conflict in Ukraine. The distribution of the EMP Resilience does not include any eligibility criteria based on the legal form of the company (excluding credit institutions and finance companies), its size or its sector of activity. Each application is examined on a case-by-case basis, according to the company's financial situation and its need for financing.
The PGE Resilience (see PGE and the end of the crisis - p.27 of the file) has been available since the publication of the order on April 8. All eligible companies have been able to submit their applications to their banks since that date. The scheme is due to end at the end of June. If the need is confirmed, it could be extended by a rectifying finance law, in accordance with the European Commission's temporary Ukraine framework, until December 31, 2022.
A loan at cost
Beneficiaries of the EMP Resilience can choose the rules for repayment and amortization of their loan, according to the same terms and conditions as for the EMP set up in the context of the health crisis. The main banking networks have also confirmed their commitment to offer this new EMP at cost price for the entire duration of the loan.
Reminder: A dedicated space for certified public accountants to support their clients in obtaining the state-guaranteed loan (PGE) has been available since the beginning of April 2020 on Network Experts-comptables, the ordinal platform for connected solutions. This tool remains operational and will accompany the evolution of the SGP to help companies cope with the shock generated by the conflict in Ukraine: access the tool
Source: Ordre des Experts-Comptables
