Subsection 1: Nature and conditions of granting

The repayable advance is an interest-free loan financed by the State and granted, after appraisal of the business start-up or takeover project, to one or more natural persons who undertake to include the amount in the capital of the company set up or taken over or to use it for the operation of the sole proprietorship set up or taken over.

To qualify for the repayable advance referred to in 2° of article R. 5141-1, the applicant must present a business start-up or takeover project that is genuine, consistent and viable in terms of the local economic environment, the resources deployed and the applicant’s skills.

The application must be made prior to setting up or taking over a business or starting a new activity. It must be accompanied by a file showing that the applicant meets the conditions for the granting of this advance. An order of the Minister for Employment defines the composition of this file.

Where there is no authorised body in the département, pursuant to article L. 5141-6, the application for the repayable advance is sent to the Prefect. The Prefect issues the applicant with an acknowledgement of receipt and makes a decision on the application within two months of the date of receipt. The applicant is notified of the decision. If no reply is received within two months, the application is deemed to…

The decision to grant a repayable advance entails the simultaneous granting of the aid provided for in 1° and 3° of article R. 5141-1.

The repayable advance is conditional on obtaining additional financing.

The amount of the repayable advance varies according to the financial characteristics of the project and the number of individuals benefiting from the aid for this project.

The maximum amount of aid allocated to a project, depending on whether it is individual, collective or concerns employees taking over their company in difficulty as provided for in 6° of article L. 5141-1, as well as the characteristics of the additional financing mentioned in article R. 5141-18, are determined by joint order of the ministers responsible for employment, the economy and the budget.

The advance is repayable within a maximum of five years. The first repayment is made no later than twelve months after payment.