Last update: 20/11/2020

SOCODEN - MUTUAL & SOLIDARITY PARTICIPATORY LOAN TO FACE THE PANDEMIC

Friday, 20 November, 2020

While the health crisis has a strong impact on the economic activity of cooperatives (at least 70% are experiencing a reduction of their activities), the Scop Movement is mobilizing to be resilient in the face of the crisis. Several mechanisms and exceptional solutions have been put in place to help Scop and Scic companies and prepare for the recovery by our member SOCODEN, and in in particular the mutual aid and solidarity participatory loan (PPES). This financing - simple and fast (already 2 M € in one month) - aims to support the cash flow of cooperatives in the management of taxes, social security and banking, temporary unemployment and the loan guaranteed by the State.

This specific fund set up has the advantage of intervening very quickly, since it takes two days to make a funding decision, and one week for the payment. The loan amount varies from 5.000 to 50.000 euros, for a period of 12, 18 or 24 months, with a rate of 0.5%. Since the implementation of this solution, March 13, 2020, the fund has intervened 85 times, for a total amount of 1.929/200 euros. 
 
The average workforce of companies financed is 12 employees, and the average amount of interventions is 23.000 euros per cooperative.
 
 
 
Discover all the actions activated by FEBEA members to face the pandemic: https://febea.org/febea/news/ethical-finance-response-covid-19-crisis