France launches €50,000 “fuel flash loans” to support small firms

The French government has launched a new emergency financing scheme, dubbed the “fuel flash loan”, to help small businesses cope with rising fuel costs linked to tensions in the Middle East.

Announced by the Ministry of the Economy in partnership with Bpifrance, the programme will offer loans ranging from €5,000 to €50,000 at a fixed interest rate of 3.80%, with no collateral required, Caliber.Az reports via French media.

The scheme is aimed at very small businesses (TPEs) and small and medium-sized enterprises (SMEs) operating in sectors most affected by fuel price increases, including transport, agriculture and fishing. To qualify, fuel expenses must account for at least 5% of a company’s turnover.

According to the government, applications will be processed entirely online via Bpifrance, with funds expected to be made available within seven days.

Businesses must meet several conditions, including being established for more than one year and agreeing to provide access to recent bank statements.

The loans will run over a period of 36 months, including a 12-month grace period on capital repayment.

The scheme will be available across mainland France as well as overseas departments and regions.

The initiative follows earlier commitments by Prime Minister Sébastien Lecornu to introduce measures aimed at offsetting the economic impact of higher fuel prices. Meanwhile, Minister for Small and Medium-sized Enterprises Serge Papin has indicated that the public investment bank Bpifrance will provide subsidised, state-backed loans to support business cash flow.