WHAT ARE THE CONDITIONS TO GET LOANS TO INNOVATION SECTOR
From the instance a foreign group is considered as an Small or Medium Enterprise (SME) under the European definition and that their French branch or subsidiary develops an innovating technology, it can benefit from the following favorable term loans: first of all, loans can reach a high equivalent of the net equity and comparable funds (between 1 and 2). Moreover, the first reimbursement is deferred for at least 2 years and no guaranty is required. Lastly, the can be accumulated with employment subsidies, the research tax credit (CIR in France) and/or the statut JEI (Young Innovative Status).
WHAT ARE THE MOST INTERESTING TYPES OF LOAN TO INNOVATION A COMPANY CAN GET?
The first most interesting mechanism to apply to during the creation stage of the subsidiary is the seed loan (PPA: Prêt Pour l’Amorçage in French). To benefit from it, the entity has to initiate an R&D program and the group must have less than 5 years of existence. The loan ranges from 50 to 150k€ (but capped at the amount of net equity) over a 7-year period with a 36-month deferral for payback.
Subsequently, the loan for innovation (PPI: Prêt Pour l’Innovation in French) is by far the most interesting. To benefit from it, the group must have more than 3 years of existence and the subsidiary has to manufacture and sell an innovating technology. This loan can reach up to 3 M€ by 12 months periods and be equivalent to twice the amount of net equity (in other words, a subsidiary with a 1.5 M€ net equity can benefit from the maximum). The loan is based on a 7-year period with a 24-month deferral for payback.
Both these loans with favorables terms can be summarized as follows:
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