Energy crisis: the government is asking small businesses to take on debt to survive

Faced with soaring energy costs, the government has announced the introduction of a “Boost fuels” loan, operated by Bpifrance, which can reach up to 50.000 euros to support the cash flow of very small businesses (VSBs).

For the Independent Workers' Union (SDI), the response provided calls for a clear reaction.

According to Marc Sanchez, general secretary of the Union of Independent Workers and Very Small Businesses: “Today, very small businesses are being asked to take on debt to cope with a crisis they are experiencing. This is an unfair and economically risky approach: it gives the illusion of a lifeline, but with a deferred bill. The problem isn't the lack of a solution, it's that this solution places the burden of the crisis on those least able to cope with it.”

While the SDI acknowledges the existence of a response within a constrained budgetary context, Marc Sanchez believes that the system is based on a poor diagnosis.

By favouring a debt instrument, the government is transforming an immediate shock into a future constraint, at the very moment when very small businesses are facing a rapid deterioration of their margins and cash flow.

The SDI warns of a chain reaction: companies that survive for a few months thanks to debt, before finding themselves facing a double bind — still high costs and repayments to honor.

Furthermore, the Secretary General of the SDI points to a major blind spot: the lack of a comprehensive response for local micro-enterprises — shopkeepers, craftsmen, independents — who are nevertheless directly exposed to rising energy costs.

The SDI calls for a rapid change of course, based on measures directly targeting the burdens:

• Immediate reduction in energy bills
• Automatic payment deferral systems
• Measures targeted at social security and tax contributions

Illustrative image of the article via Depositphotos.com.