SIAGI and OSEO renew their partnership for the access to finance of small companies

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On 23rd February, Bernard Stalter, Chairman of SIAGI, and François Drouin, Chairman of Oséo, signed an annual agreement, renewing a credit co-guarantee partnership dating from 1999. Since the 1^st April 2011, the two guarantee societies provide a specific “enlarged” guarantee instrument with a coverage rate of up to 80% for self-employed entrepreneurs (EIRL, a new sole proprietor statute in France).

Thanks to a framework agreement, SIAGI can issue SIAGI/OSEO co-guarantees to banks with a view to financing mainly business transfers as well as investments in crafts businesses. This co-guarantee instrument now allows banks to benefit from an appropriate expertise and a solid guarantee to cover their risk exposure (up to €300.000 per beneficiary company).

These guarantee mechanisms enable companies to find a financing solution at their respective banks: 70% guarantee coverage for business start-ups, 50% guarantee coverage for a young entrepreneur of the expansion of the business.

A specific guarantee instrument is provided for self employed entrepreneurs: The “enlarged” guarantee gives a guarantee cover of up to 80% for start-ups and up to 70% for business transfers, young entrepreneurs, expansion of the business etc. for EIRLs. Thus the bank can limit its own risk of final loss to a maximum of 20% for start-ups and to 30% for other operations.

Link: http://www.oseo.fr/a_la_une/actualites/siagi_et_oseo_renouvellent_leur_partenariat