Tools for financing investments in France
If you have a development project in France, you can benefit from various financing tools adapted to your needs. Whether it is to create, innovate, export or even deal with the health crisis, there are solutions to support your activity and your growth. Here is an overview of the main investment financing tools in France.
The subsidies
Subsidies are financial aid granted by the European Union, the French State or local authorities to finance projects contributing to public policies. They can cover part or all of the cost of the project, depending on the eligibility criteria and the terms of co-financing. Grants are awarded to public or private organisations, and exceptionally to individuals, on the basis of calls for proposals or unsolicited requests. The areas of intervention are varied: research, education, culture, environment, solidarity, etc.
The loans
Loans are borrowings contracted from public or private financial institutions to finance tangible or intangible investments. They can be subsidized, i.e. benefit from an interest rate lower than the market rate, or guaranteed, i.e. benefit from a public guarantee in the event of default by the borrower. . Loans can be granted directly by financial institutions or through public schemes such as the European Fund for Strategic Investments (EFSI), the COSME program for SMEs or the France Relance plan.
Equity
Equity is capital contributions made by public or private investors in the capital of a company. They make it possible to strengthen the company's equity, that is to say the part of the capital which belongs to it directly, and to give it the means to finance its growth. Equity can take the form of venture capital, development capital or buyout capital, depending on the stage of development of the company. They can be mobilized directly by investors or through public funds such as the European Investment Fund (EIF) or Bpifrance.
Specific devices
In addition to traditional financing tools, there are specific mechanisms to support investments in certain sectors or certain priority themes. For example, the Development and Debt Reduction Contract (C2D) is a cooperation tool that allows France to cancel part of the public debt of a developing country and reallocate these funds to sustainable development projects. The Local Innovation and Competitiveness Fund (FICOL) is a tool that aims to support innovative projects carried out by local authorities in the areas of circular economy, renewable energy or even sustainable mobility. The Fund for studies and assistance to the private sector (FEXTE) is a tool that allows the French Development Agency (AFD) to finance studies or pilot actions in the field of economic and social development.
As you can see, there are a multitude of investment financing tools in France, adapted to each type of project and carrier. To find out more about these tools and how to access them, you can consult the websites of the public bodies concerned or contact a specialist advisor.