France to Offer Loans to Small Businesses Hit by Fuel Costs

The French government will offer loans of as much as €50,000 ($57,600) to small businesses that are the most exposed to rising fuel costs in transportation, fishing and agriculture. The loans will run for 36 months and are limited to companies in those sectors that spend at least 5% of their revenue on fuel. They will be issued through an online platform run by public investment bank Bpifrance, the finance ministry said in a statement late Friday. The government had already announced very limited fuel subsidies for sectors including trucking and fishing, and an expanded distribution of energy support to low-income households. But it has so far avoided broader, costly measures after indiscriminate outlays in 2022 contributed to expanding a budget deficit the country is still struggling to reduce. On Thursday, French Prime Minister Sebastien Lecornu asked ministers to prepare measures to help individuals who depend on cars after fuel prices surged on the Iran war. Opposition lawmakers including far-right leader Marine Le Pen have called for steep cuts to taxes on gasoline and diesel, and accused the state of profiting from a boost in revenues as prices rise. The small-business loans announced late Friday will carry an interest rate of 3.8%, won't require any guarantees from borrowers, and can be applied for from April 13, the finance ministry said. Read More on France: French Inflation Quickens to Highest Since August 2024 on War France Broadens Energy Aid to Additional 700,000 Households France Unveils Limited Aid to Offset Iran War Impact on Economy