Subsection 1: Non-profit-making associations and recognised public interest foundations authorised to make certain loans.

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R518-57R518-58R518-59R518-60R518-61R518-62

Article R518-61

French Monetary and Financial CodeIn force
Ask for lawyer reviewed or certified translation

Updated 5 Nov 2023

The lending operations carried out by associations and foundations under the authorisation granted pursuant to article R. 518-58 meet the following criteria:

1° Loans are made against payment ;

2° Loans may not be granted to companies with more than three employees;

3° Loans intended to help finance social integration projects are granted to individuals facing financial difficulties whose ability to repay the loans is deemed sufficient by the associations or foundations and who receive social support. These loans are granted with a view to accessing, maintaining or returning to employment. They may also be granted for social integration projects that are not directly linked to a professional objective;

4° Unless an exceptional decision is taken to reschedule the loan, with due justification, all loans granted to the same beneficiary are repayable and the interest payable:

a) Within a maximum of five years from the date of first disbursement of the funds paid for a business creation or development project;

b) Within a maximum of seven years from the date of first disbursement of the funds when the loan is granted to a natural person to carry out a social integration project;

5° The association or foundation may not grant a new loan to the beneficiary company, in application of this sub-section, unless the repayment schedule for the loan or loans previously granted, which may have been rescheduled under the conditions set out in 4°, has been complied with;

6° The total amount of outstanding loans granted under this sub-section is capped at :

a) €12,000 per participant and per company for a business start-up or development project ;

b) €8,000 per borrower when the loan is granted to a natural person for the implementation of an integration project.

The loans granted are subject to financial monitoring throughout their term. The Autorité de contrôle prudentiel et de résolution determines the conditions under which associations or foundations must carry out financial monitoring of the loans they grant and report back to it.

Loans must be guaranteed by an approved guarantee or surety fund, a credit institution or a finance company.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

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15+ Years In Corporate Practice

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