Jean Claude Depoisier

Vice-Président of the SOCAMA Network Istanbul 17th October 2014

The EU Financial Instruments :

Experiences gained of the SOCAMA

Network

Sommaire

1. The SOCAMA : Facts and figures, missions, organizational model, decision-making process, business model

2. Relations with EIF and Products of SOCAMA supported by European programs

3. Performance of SOCAMA : key figures

4. Conclusion

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1. The SOCAMA

Set up for and by entrepreneurs (1917 Act )

Activities of guarantees for bank loans

A network of 26 SOCAMA throughout France

250 000 members

Between 25 000 and 30 000 loans guaranteed every year for a total value of € 700 - 900 million

Exclusive partnership with the Banques Populaires

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1. The SOCAMA : Missions

To facilitate access to bank loan finance

To reduce collateral requirements by the Banques Populaires

To protect the entrepreneur’s personal assets

–

By providing a 100% guarantee

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1. The SOCAMA : Organizational model

Representatives from the different sectors (800 volunteers) :

Professional organizations

Chambers of Crafts

Chambers of Commerce

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1. The SOCAMA : Decision-making process

SOCAMA

Analysis of professional

criteria

BANQUE POPULAIRE

Risk control and Analysis of

financial criteria

Grant the SOCAMA guarantee

Loan grant by BANQUE POPULAIRE

If ok Banque Populaire

If ok SOCAMA

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1. The SOCAMA : The business model

The SOCAMA guarantee is funded as follows : Underwriting of share members

Contribution to mutual guarantee fund

Payment of management fee

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2. The SOCAMA supported

by European programs

Two exclusive SOCAMA / Banque Populaire / EIF products to protect the personal assets of the entrepreneur and his/her family:

To finance the growth of companies : “SOCAMA Express Loan without personal collateral requirements”

To finance business transfers : “SOCAMA Business Transfer Loan »

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2. Relations with IEF :

agreements signed

European programs

MAP

CIP1

CIP2

Periods

To September 2003

from June 2007

To October 2007

from March 2011

To April 2011

from March 2013

To April 2013

from March 2015

Total

amount loans counter-

guarantee

965 M€

1 318 M€

1 800 M€

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2. The SOCAMA product mix

with the support of European programs

The SOCAMA Express Loan without personal collateral (PESE)

- Maximum loan amount : € 50 000 - Loan term : between 18 and 60 months - 100% SOCAMA loan guarantee with 50% counter-guarantee by the EIF. - Advantage for the borrower : Full protection of personal assets. The SOCAMA and Banque Populaire explicitly decline to claim the pledge of any personal collateral or guarantee

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2. The SOCAMA product mix

with the support of European programs

The SOCAMA Business Transfer Loan (PSTR)

- Maximum loan amount : € 150 000 - Loan term : between 18 and 84 months - Period of grace up to 9 months possible

- 100% SOCAMA loan guarantee with 50% counter-guarantee by the EIF. - Advantage for the borrower : Protection of personal assets. Recourse to personal assets is limited to 25% of the loan amount.

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3. Performance of SOCAMA :

Key figures Loan production

Strong increase of activity between 2003 and 2007 through the launch of new products developed in partnership with the EIF……followed by a decrease during the crisis years and a slight rebound in 2010.

Production in € million

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211 204 158 217

270 296 258 232

46 108 147

173 127

114

164

185 184

177 184 519

574 575

535 671

549 375

382 397

358 326

0

100

200

300

400

500

600

700

800

900

1000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

PSTR PESE STANDARD

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3. Performance:

Key figures Production by activity sector as of 31/12/2013

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3. Performance of SOCAMA :

Key figures division of loan allocation as of 31/12/2013

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3. Performance of SOCAMA :

Examples of financed projects

Financing of the purchase of a vehicule in a joinery Need 17K€ : purchase of the véhicule 17 K€ Financing : The SOCAMA Express Loan without personal collateral 17 K€

Financing of a lift for welcome of the handicapped persons in a hotel Need 30 K€ : a lift 30 K€ Financing : The SOCAMA Express Loan without personal collateral 30 K€

Financing of the installation of a 30-year-old young man as craftsman taxi with purchase vehicule and license Need 180 K€ : a new véhicule 35 K€ - license 140 K€ - expenses transaction 5 K€ Financing : Money of the family 15 K€ - The SOCAMA Business Transfer Loan 150 K€ - Complementary Loan 15 K€

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In conclusion, ……..

- Its exclusive partnership with the Banques Populaires, - its expertise in analyzing professional criteria, -its very confordable pricing, - and its products supplied together with the European Investment Fund and European supports,

.…………...do SOCAMA the leader mutual guarantee company for small business in France.

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Thank you for your attention

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