"Fuel Boost" loan: SDI denounces an inadequate response

With the launch of the "Boost Fuels" loan, the Union of Independent Businesses and Very Small Businesses (SDI) is warning that this is an inadequate response to the energy crisis. By offering debt to businesses, the government is missing the main issue: the level of energy costs.

On April 13, the government officially launched the "Boost fuels" loan, intended to support companies' cash flow in the face of rising energy costs.

For the Union of Independents and Very Small Businesses (SDI), this measure constitutes an inappropriate response to the current situation.

"In France, we don't have oil... but we have loans," says Marc Sanchez, Secretary General of the SDI.

While the SDI acknowledges the existence of a response in a constrained budgetary context, it believes that the system relies on the wrong lever.

"This is not aid, it's a loan. And our companies are not asking to go into debt to survive, they are asking to be able to work," he continued.

The proposed scheme - a loan of up to 50,000 euros, at a rate of approximately 3,8%, without collateral - allows at best to cope in the short term with rising costs.

But for the SDI, it does not solve the underlying problem.

“We are turning a cost crisis into debt to be repaid. A company that cannot absorb its expenses today will not have any more capacity to repay tomorrow,” emphasizes Marc Sanchez.

The SDI also warns of the gap between the response provided and the reality on the ground.

"In practice, this type of loan will only be used by companies already in difficulty, for lack of an alternative," he adds.

Faced with this situation, the SDI calls for an immediate change of course, based on a reduction of the burdens placed on businesses.

Among the proposed measures: the temporary suspension of energy saving certificates (CEE).

“Small businesses are already paying for the energy transition… while they can no longer afford to pay for their energy,” Marc Sanchez points out.

These devices represent an indirect cost estimated at between 10 and 15 cents per liter of fuel.

"Their suspension would allow for an immediate drop in prices, without creating additional debt," he insists.

For the SDI, priority must be given to simple, readable and immediate measures.

“A cost crisis cannot be solved with debt,” concludes Marc Sanchez.

Illustrative image of the article via Depositphotos.com.