ThoseEconomic support in Geneva
Thanks to her, nearly 800 jobs were saved in 2024
Despite a return to normal post-Cavid, the director of the business aid foundation remains concerned about the fragility of certain sectors.
Patrick Schefer, Director of the Business Aid Foundation (FAE).
Laurent Guiraud/Tamedia
- Of the 30 million covid loans granted, 22 million have already been reimbursed.
- Companies on the domestic market have undergone strong competitive pressure for several years.
- The catering sector remains the main help seeker.
Back to normal for the business aid Foundation (FAE) after the COVID years with regard to the amounts and the number of subsidized companies. The amount of aid, the number of companies supported has returned to normal.
But the cyclical reversal threatens. If he materializes, he will weigh on weakened companies, estimates his director, Patrick Schefer. Interview with one of public institutions Geneva responsible for helping companies.
Patrick Schefer, with the tariff crisis and the narrowing of International Geneva, the economy retains its breath. Seen from the FAE, what to expect?
It’s a bit early to say. In recent years, Geneva economic performance has been linked to the results of a handful of international trade companies. In contrast, those that are on the domestic market live for some a latent crisis. This is the case of construction or catering with companies that experience extremely strong situations of competition and margins which, for some, have not been reconstituted from the COVIR.
If the situation is deteriorating, how do you see your role?
The law is clear. The FAE gives loan guarantees. It intervenes in a subsidiary way when all other solutions have been tempted. But a loan, repayable is also debt, which can dissuade companies, which, when they need money, often find us too restrictive and very hard when it is necessary to reimburse.
In the event of a major crisis, the Council of State has the latitude to unlock loans, according to a system implemented during the health crisis in 2020. The scheduled schedules or lost fund loans are options that were used during the COVVID. But these measures do not depend on us.
Precisely, let’s talk about Covid. How are loans reimbursements going?
During the COVID, we granted 30 million loans by processing 4,000 requests very quickly. Of the 30 million granted, 22 have been reimbursed, and 1 should be lost in connection with business bankruptcies or departures. So we have 7 million left to recover.
For a prosperous economy, it is necessary not only to attract companies, to explore new economic sectors, but also to support existing in traditional sectors when they are in difficulty.
In 2024, the FAE granted 17 million francs in loans to 62 companies and participated in the maintenance and creation of 773 jobs. It is 22,000 francs per saved employment. Was it worth it?
Yes of course. This money is essentially expense guarantees, loans granted by banks. It is used within the framework of momentary crises, investments or the transmission of companies for example, often to trigger another bank loan.
In 90% of cases, we only give our surety without advancing money. We therefore release money that for 10% of the guarantees, when beneficiary companies are unable to pay their loan, or 2,200 francs per employment (10% of 22,000 francs).
If we want entrepreneurs to get started, take risks, they must be supported if necessary. But we must also be careful. Especially since the entrepreneurs are held personally responsible for at least part of the amount of the guarantees from which they benefit. In the event of a defect, we are required to return legally against them, which is never pleasant.
The sectors that use you are mainly restoration, then, very far, construction. Why does restoration occupy such a place?
We receive many requests for help with a view to opening up establishments. I expected a collapse of the demand of this sector after the covid, but not at all. It is a sector that we know well, so we are quite restrictive given the rate of bankruptcy.
It is not easy to open an establishment: you need a concept, a place, offer a good plate, good service. Competition is strong and consumption habits are evolving with the end of midday meals, the development of winning sales.
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