Share of State-Guaranteed Loans used (% of SMEs having taken a SGL)One year after the introduction of State-Guaranteed Loans (SGLs), 39% of managers of the SMEs that took them out have indicated that they have made little or no use of the funds, whilst barely one-third stated that they had used the majority of their loan. This precautionary behaviour led companies to hoard all or part of their SGL in order to build up a liquidity reserve under favourable terms. Meanwhile, the share of managers who expect to repay their loans in full over several years has increased (41% in September 2020 to 56% in April 2021), whilst the proportion expecting to make at least partial repayment in 2021 has decreased (from 36% to 23% respectively). The proportion of companies considering that they will not be able to repay their loan in full has remained fairly stable since the mechanism was introduced (5% in April 2021). With the final subscription date set at 30 June 2021, the EUR 20 bn in Recovery Participatory Loans (“prêts participatifs Relance”) and the Recovery Bonds (“obligations Relance”) will ensure – for eligible companies and until 30 June 2022 – that there is a smooth transition to the ending of Covid support measures for company financing.
