October to provide more French Covid emergency loans
Peer-to-peer investors have earned $600,000 (£500,000) in capital and interest by backing French state-backed loans through the October platform.
An update from October revealed that it has helped provide 164 French state-backed loans worth €21m to businesses during the Covid crisis.
It has also pledged to fund more loans in the coming months after the scheme was extended.
October was accredited to France’s emergency Covid lending scheme in June 2020.
In a blog post on its website, the European peer-to-peer business lender, which operates in France, Spain, Italy and The Netherlands, said it will add new state-backed loans to its platform after the French government extended the scheme for the second time, until June 2022.
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October is working with the French authorities to find a solution to how it can provide extended repayments that will suit its lenders.
At the start of January, the French ministry of the economy and finance announced an extended access to aid businesses suffering from Covid restrictions and loss of revenue.
Small companies, that received a state guaranteed loan below €50,000 and are facing serious financial difficulties, can now get an extension of the repayment period for their loan, which passes from six to 10 years.
They will also be able to request an additional 18-month deferral period, compared to 12 months for other companies, included in the extension period.
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These businesses will have to request the extension to the Banque de France’s Credit Mediation Service, which will facilitate the negotiation between the borrower and the creditor.
October does not usually offer loans with maturity longer than seven years, except when it is made mandatory by a court decision, so is currently trying to reach out to the authorities to find the best solution for all the parties involved, including its retail lenders.
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