On October 2, 2023, the government announced the implementation of a subsidized loan program at an interest rate of 2.5% to support wine companies in repaying their State Guaranteed Loan (PGE).
A subsidized loan is a fixed-rate loan with reduced interest rates granted to agricultural operators to help cover cash flow needs and finance their operations, especially to bridge the gap left by the PGE.
The goal is to allow winegrowers to spread their banking obligations over time and free up cash flow to finance their operations. The wine sector has been severely affected by successive crises such as inflation, health issues, climate change, and geopolitical factors that have put a strain on their cash flow, while they still have to repay the PGE.
This program is expected to be implemented in early 2024. The winegrowers have been waiting for it for 18 months. It will be linked to the agricultural de minimis regime, which sets the cap on the total amount of aid granted to each farmer to €20,000 over three consecutive fiscal years.
It complements the state’s support plan of €200 million for distillation and €30 million for health-related vine removal in Bordeaux.
A call for applications from institutions is expected to be launched for the implementation of the program.
