posted by admin on Dec 27
Cash Advance
Subject
The financial and economic crisis caused a growing tension in access to bank credit. The European Commission has taken up this issue by publishing 17 December 2008, in response to this phenomenon, a new scheme allowin Business Loans to companies that are not yet placed in a backup procedure or recovery court, but could be if the difficulties of short-term credit are confirmed. The Auvergne Region proposes to implement such support to produce a leverage effect on bank lending.
Benefits
Firms with fewer than 1,000 employees whose activities are located in the Auvergne region and belonging to one of the priority economic sectors under the Regional Plan of Economic Development: mechanics, metallurgy, plastics, textiles, food processing, technology of information and communication, biotechnology, logistics, timber processing and forestry contractors, business services and the construction industry to the exclusion of financial services.
Existing businesses for over three years and employing more than five employees are considered priority of Personal Loans.
Terms of award
Conditions of eligibility
- The company should not be in trouble (as defined by the European Commission) on 1 July 2008. A company is considered distressed if it meets one of the following criteria:
* If a corporation or limited liability of shareholders is (SA, SAS, SARL, EURL), where more than half of its capital has disappeared and more than a quarter of that capital has been lost over the last twelve months;
* If a company with at least some members have unlimited liability for the debts of the company (partnership, company limited by shares, limited partnership and joint venture), where more half equity, as enshrined in the company accounts has disappeared and more than a quarter of these funds has been lost over the past twelve months;
* For all forms of business, if it meets the conditions for submitting a collective insolvency proceedings (bankruptcy, liquidation or backup) even if these procedures have not been formally initiated.
- It must demonstrate that the problems it faces are cyclical, related to the economic slowdown resulting from the financial crisis, and causing such a decrease in turnover, an increase of losses, rising inventories, excess capacity production, a decrease in cash flow, mounting debt, rising interest charges and that the weakening or disappearance of the value of net assets;
- It should not be placed in insolvency proceedings at the date of filing the application; and Loans Online
- The participation of banks and shareholders in the effort to finance the company during the period of difficulties will be a determining factor in the award decision.
The opinion of the Works Committee – where it exists – will be attached to the application file for assistance.
Will be considered priority requests from businesses that have not fired for economic reasons since 1 July 2008 and pledging not to outsource their production.