October to provide more French Covid emergency loans
Peer-to-peer investors have earned $600,000 (£500,000) in principal and interest by backing French state-backed loans through the October platform.
An October update revealed it had helped provide 164 French state-guaranteed loans worth €21m to businesses during the Covid crisis.
It has also pledged to fund more loans in the coming months after the program is extended.
October was accredited with the French Covid emergency loan program in June 2020.
In a blog post on its website, the European peer-to-peer lender, which operates in France, Spain, Italy and the Netherlands, said it would add new state-guaranteed loans to its platform after the French government extended the program for the second time, until June 2022.
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October is working with the French authorities to find a solution to offer extended repayments that will suit its lenders.
In early January, the French Ministry of Economy and Finance announced expanded access to aid businesses suffering from Covid restrictions and loss of income.
Small businesses, which have benefited from a state-guaranteed loan of less than €50,000 and are facing serious financial difficulties, can now obtain an extension of the repayment period of their loan, which goes from 6 to 10 years.
They will also be able to request an additional deferral period of 18 months, compared to 12 months for other companies, included in the extension period.
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These companies will have to request the extension from the Credit Mediation Service of the Banque de France, which will facilitate the negotiation between the borrower and the creditor.
October does not generally offer loans with terms longer than seven years, except where required by court order, and is therefore currently trying to contact the authorities to find the best solution for all parties involved, including its retail lenders.
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