There are many funding solutions that support business creation and expansion in France. Some of these solutions are provided by the French government. Business owners may wonder what financial assistance is available for entrepreneurs. What is a government subsidy? Is there assistance specifically for small businesses?

In this article, we explain the assistance and subsidies offered to businesses by the French government. We also provide a list of available funding for creating, acquiring, and growing companies, along with the steps you can take to benefit from government programs in France.

What’s in this article?

• How is government assistance defined, and what types of assistance are there?
  
• What are the main types of assistance available to companies?
  
• How is assistance awarded?
  
• How can companies access public programs?
  
• How Stripe Capital can help
  

How is government assistance defined, and what types of assistance are there?

Government assistance is financial support from national or local governments. It encourages the creation, acquisition, and expansion of growing businesses. Government programs for businesses include:

• Subsidies: Money from the government that does not need to be paid back
  
• Tax credits: Tax incentives that allow a company to recover a portion of certain types of expenditures
  
• Subsidized loans: Loans at reduced rates to fund investment in specific geographic areas and industries
  
• Advances: Money that must be paid back if a company is successful
  

For example, France 2030 is a public subsidy that provides financial assistance to French companies so they can become more environmentally friendly or energy efficient. The purpose of research tax credits (crédit d’impôt recherche, or CIR) is to encourage investment in research and development (R&D) activities.

What are the main types of assistance available to companies?

There are more than 2,000 types of financial assistance available to French companies. Some public programs are meant to encourage creating new companies or acquiring existing ones:

Assistance for new companies

• Assistance with starting or taking over a business (Acre)
  Acre is a temporary waiver of payroll tax requirements for new companies. The waiver can be for an entire or partial amount during the first 12 months of operation. The goal of this waiver is to facilitate launching a new business and to decrease the financial costs involved.

• Assistance with business takeover or creation (Arce)
  After a period of unemployment, those who take over or create a business can access a portion of their remaining unemployment benefits in the form of capital, including up to 60% of the entitlement. Arce is funded by France Travail. Please note that entrepreneurs can continue to receive unemployment benefits through the unemployment benefit and return-to-work assistance program (allocation chômage d’aide au retour à l’emploi, or ARE).

• Company project support contract (contrat d’appui au projet d’entreprise, or Cape)
  Cape is a contract between a project creator and a supporting entity. The supporting entity is a company or association that provides material and financial assistance. The beneficiary commits to following a training program on business management. This provides a way to test a project’s viability.

• Young innovative company (JEI) or young university company (JEU) status
  JEI and JEU status allow new entrepreneurs investing in R&D to benefit from a temporary two-year waiver on taxes applied to profits. The JEI or JEU must have been created before December 31, 2023 to be able to benefit from this tax relief.

Programs for business expansion

Other programs focus on supporting existing businesses. These programs target job creation, competitiveness, and sustainability. There are also public programs that support small and medium businesses converting to digital environments.

For example, the tax credit for competitiveness and employment (crédit d’impôt pour la compétitivité et l’emploi, or CICE) aims to decrease the amount of payroll taxes an operating business is required to pay.

In addition, the Agency for Ecological Transition (agence de la transition écologique, or ADEME) provides companies with subsidies for projects that help make them more environmentally friendly. These can include projects that improve energy efficiency and air quality, manage waste, conserve natural resources, and create sustainable environmental solutions that benefit local communities. Here’s a list of all financial assistance available from ADEME.

Targeted assistance

There is also assistance with specific criteria, including:

• Women’s EQUALITY Guarantee (Garantie ÉGALITÉ Femmes): A bank loan of up to €50,000 provided by Bpifrance for women entrepreneurs
  
• Free urban areas (zones franches urbaines): Tax breaks for businesses operating in certain areas of France that include up to 100% waived taxes on profits for a period of five years
  
• Bourse French Tech (BFT) Grant: Assistance of up to €30,000 by Bpifrance for companies demonstrating strong growth potential
  

Other assistance focuses on specific industries, such as:

• CIR: Supports R&D investment
  
• Innovation tax credit (crédit d’impôt innovation, or CII): An extension of the CIR that provides funding for small businesses focused on innovation
  
• Tax credit for artisanal businesses: Aims to decrease startup costs for companies working in this industry
  

How is assistance awarded?

Eligibility criteria and the amounts awarded to businesses vary according to the relevant government program. Some assistance to businesses are for specific industries or geographic regions, while others are awarded based on business size (e.g., to small businesses).

Use the database of government assistance provided by Bpifrance to identify the options available, depending on the company’s size, industry, business type, and location.

How can companies access public programs?

For access to public programs, businesses must do the following:

• Identify the company’s stage of development.

• Research funding assistance that matches the project.

• Conduct market research.

• Prepare an application that demonstrates the project’s viability and potential (e.g., provide a balance sheet, income statement, project impact, business goals, proof of required compliance, growth strategy, expected benefits).

• Submit the application to the funding entity, and honor commitments after receiving financing.

How Stripe Capital can help

Stripe Capital offers revenue-based financing solutions to help your business access the funds it needs to grow.

Capital can help you:

• Access growth capital faster: Get approved for a loan or merchant cash advance in minutes—without the lengthy application process and collateral requirements of traditional bank loans.
  
• Align financing with your revenue: Capital’s revenue-based structure means you pay a fixed percentage of your daily sales, so payments scale with your business performance. If the amount that you pay through sales doesn’t meet the minimum due each payment period, Capital will automatically debit the remaining amount from your bank account at the end of the period.
  
• Expand with confidence: Fund growth initiatives such as marketing campaigns, new hires, inventory expansion, and more—without diluting your equity or personal assets.
  
• Use Stripe’s expertise: Capital provides custom financing solutions informed by Stripe’s deep expertise and payments data.
  

Learn more about how Stripe Capital can fuel your business growth, or get started today.