To help tackle rising fuel prices, here are some measures introduced by the government for businesses and self-employed workers.
Against the backdrop of sharp rises in fuel prices, a “prêt Flash Carburant” (flash fuel loan) scheme was launched on Monday, April 13th.
In response to rising fuel prices linked to geopolitical tensions in the Middle East and the blockade of the Strait of Hormuz, the Government has been working with Bpifrance (French public sector investment bank) to provide rapid financial support to small businesses most affected by these rising costs.
The aid mostly takes the form of interest-free loans for businesses and extensions to deadlines for payment of taxes and social contributions for self-employed and freelancers.
What is it?
The prêt Flash Carburant will be available from April 13th and will help eligible businesses.
Its features include:
- loan amount between €5,000 and €50,000,
- term of 36 months, including a 12-month grace period on reimbursement
- interest rate of 3.8 percent
- funds are made available within seven days on average
- no collateral required from the borrower
This loan is also available in France’s overseas départements and regions.
Who can benefit?
This loan is available to small businesses (TPE, fewer than 10 employees and an annual turnover or total balance sheet of less than €2 million) and small and medium-sized enterprises (PME, a company that does not exceed at least two of the following thresholds: a balance sheet total of €25,000,000, a turnover of €50,000,000, and 250 employees during the financial year) and must meet the following criteria:
- needs to have existed for more than one year and be able to provide accounting records covering a minimum period of 12 months’ activity
- have fuel costs representing at least five percent of turnover
- operate in one of the eligible sectors: transport, agriculture or fishing
- have a business bank account and agree to grant Bpifrance read-only access to their bank statements for the last few months
The request for this loan can be found here, and an answer will be provided within 48 hours.
Urssaf help for employers and freelancers
To assist and support employers and freelance workers (travailleurs indépendants) affected by rising fuel prices, the French service Urssaf has also recently announced measures to ease the burden of contribution payments (paiement des cotisations).
Within this framework, employers may request a deferral of payment of their employer’s contributions (délai de paiement des cotisations), which can be spread over 12 months.
URSSAF: What is it, how it works, and how it affects you
To qualify for this payment plan, the employer must be up to date with the payment and declaration of all their employees’ contributions.
Similarly, self-employed workers may also apply for a payment extension.
They may request a reduction in their contributions (réduction de leurs cotisations provisionnelles) if they anticipate a decline in business activity compared to the previous year. The amount will then be adjusted in line with their actual income.
Self-employed workers may also apply for assistance from the CPSTI’s social welfare scheme (Conseil de la protection sociale des travailleurs indépendants), administered by Urssaf itself. This provides social protection to self-employed individuals. Under this scheme, contributions collected by Urssaf finance essential benefits, including health insurance, retirement pensions, disability coverage, and daily allowances in case of illness or maternity leave.
You can contact the Urssaf through its messaging service via your account or by phone 3957 (for employers) or 3698 (for self-employed workers).
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