Crowdlending: France adopts a more equitable framework for the financing of SMEs

SMEs are the main job creators in the country. But they are still, in France, very dependent on bank financing for their growth at a time when banks are facing many new constraints.

Since the entry into force in October 2014 of the ordinance on crowdfunding, the Law allows individuals to directly finance the real economy through crowdfunding and in particular remunerated loans.

One year after the establishment of this secure legal framework for both borrowers and savers, the deputies and the government have just adapted the tax system to make it fairer for those who lend to companies.

Thus, the adoption on December 1, 2015 of amendment n ° 718 of the PLFR for 2015 allows individuals who grant these loans to be able to charge against the interest received the capital loss suffered in the event of non-repayment of these loans. This allocation will be possible for the year in which the irrecoverable nature of the debt is noted and for the following five years.

"This is a giant leap for the financing of SMEs and crowdlending" declares Olivier Goy, Vice-President & Treasurer of France Fintech.

The France Fintech association and its members are delighted with this major advance, which will allow a wider adoption by individuals of this form of innovative financing of the economic fabric of France.