Like Metropolitan France, the French Overseas Departments and Territories have also suffered from the Covid 19 pandemic. This is particularly the case in Martinique where the economic activity is slowing down and the beaches are desperately deserted. It is true that the island has already paid a heavy price in terms of health since the arrival of the latter on the territory in March 2020. In addition, the island’s economy is also affected, especially the hotel industry. But entrepreneurs can hope to get back on track with theCovid-19 Territorial Loan .
What is the Covid-19 Territorial Loan for?
The Covid-19 Territorial Loan is a financial aid offered by the Territorial Collectivity of Martinique to companies facing cash flow difficulties due to the health crisis. It is therefore a support mechanism to enable these companies to resume their activities. The companies eligible for this loan are SMEs and VSEs whose head office is based in Martinique. On the other hand, it is essential that their activity has effectively started at least 6 months ago. In addition, they must be experiencing real cash flow difficulties that pose a serious threat to their future and their existence.
Terms and conditions of the loan
In fact, the Covid-19 Territorial Loan, granted by the Territorial Collectivity of Martinique, is a zero interest loan. Its amount is capped at €60,000 per company. This assistance is intended to finance 50% of the needs of the latter, in all categories of eligible expenses. These include:
- Investments,
- Working capital requirement (WCR),
- Etc.
However, companies that are shut down completely by administrative order are still eligible for a 10% bonus. The duration of this assistance is 7 years, with a 1-year deferral. Note that a personal guarantee is not required if your company wishes to benefit from the Covid-19 Territorial Loan. On the other hand, your company’s turnover must not have exceeded €2 million in 2018 and it must have decreased by more than 30% in March and April 2020. This should result in a deterioration of your working capital. Finally, it is essential that your company is unable to pay its debts.
Exclusions
From the outset, it should be noted that theCovid-19 Territorial Loan is aimed at SMEs and VSEs that are experiencing temporary cash flow problems due to the health and economic impact of Covid 19. These companies have had to completely stop or significantly slow down their activities in order to comply with the containment measures decided by the Government as of March 14, 2020. Thus, the purpose of the loan is to finance investments or working capital needs of these companies. However, it cannot be used to pay debts to social or tax organizations. Similarly, the entrepreneur cannot use it to prepay his current loans.
Special cases
Before looking at the steps to follow to obtain a Covid-19 Territorial Loan, it is useful to review 2 specific cases.
- Your company is in total stop of activity
In this case, it can receive a grant of between €1,000 and €10,000 maximum. To do this, consider a 30% loss between March1 and April 30, 2020, compared to the sales you made between March1 and April 30, 2019. There is also €1,000 per full-time equivalent maintained in April 2020. At this stage, companies that are less than 1 year old can claim a flat fee of €1,500 due to the impact of Covid 19 on their turnover.
- Your company has slowed down its activity
In this case, it can receive a grant of between €1,000 and €5,000 maximum. As a result, a 10% loss of revenue between March1 and April 30, 2020, compared to the revenue generated during the period of March1 to April 30, 2020, must be considered. In addition, there is €1,000 per full-time equivalent maintained for April 2020. Finally, if your company has been in business for less than 1 year, it can receive a lump sum of €1,000 to offset the impact of Covid 19 on its sales.
How do I get this loan?
If you are eligible, it’s time to find out what steps you need to take to apply for the Covid-19 Territorial Loan for your business.
Who to contact?
It is important to know that the Territorial Collectivity of Martinique (CTM) has completely dematerialized the procedure for receiving and processing applications. So, you need to log on to the MTA website to find out more.
However, it is now Initiative Martinique Active (IMA) which is in charge of processing the loan applications. In other words, applications should be sent directly to the IMA.
You can therefore contact this structure directly by email or by phone to obtain more information. It is also possible to navigate through its web portal to avoid wasting time. Finally, you should be aware that the deadline to apply for the Covid-19 Territorial Loan is November 30, 2021. As far as the processing time is concerned, the different actors are aware that it is a race against time and that the survival of the companies may depend on it. This is why they are committed to ensuring that each file is processed as quickly as possible, given that this is an emergency logic. With this in mind, processing is much faster than usual. Indeed, it is not uncommon for a file to be verified and validated in the same day!
Other possible aids
In addition to the Covid-19 Territorial Loan, the Collectivité Territoriale de Martinique has set up a number of mechanisms to help companies located on the island. These include the Territorial Subsidy Fund, the Solidarity Fund, the easing of the rules for implementing European funds, the contractualization of rebound loans with the BPI, etc.
Relaunching your business
After a difficult and slow period, it is unfortunately difficult for companies to return to their initial level of activity as quickly as they would like. In this context, communication can be an essential asset to accelerate the process by informing your customers of your recovery and especially by prospecting new targets.
In addition, the Covid crisis has shown the need for companies to digitize. Many companies have indeed been able to limit the impact of the crisis by offering their products or services via social networks or a website and setting up delivery or click & collect services, for example.
It’s true that in times of financial hardship, it’s difficult for companies to invest in communication and know how to make that investment have a positive impact on your bottom line. Thanks to our great expertise, our ability to advise and our unfailing flexibility, our customers have found in the teams of Altosor Communication Martinique, a support and a quality listening. This is how we were able to support them as best we could, while respecting their budget, in order to help them overcome this difficult ordeal. You want to know how to help us and get a quality and tailor-made advice to improve your communication and boost your business?
