All there is to know about the NACRE system

As a business creator or buyer, there are many sources of financial aid to get your project up and running: from loans specific to your field to financial support from Pôle Emploi (the French national unemployment agency) and la Caisse d’allocation familiale (the French family benefits fund). In fact, if, like 35%* of all project holders, you’re currently unemployed, maybe you’ve even heard of one of the key help measures: the New Accompaniment Scheme for the Creation or Takeover of Companies (Nouvel accompagnement pour la création ou la reprise d'entreprise or NACRE in French).

If you’re not familiar with this measure yet, fret not. We’ll explore all there is to know about NACRE, the public financial aid created to help you become an entrepreneur.

*according to an INSEE/APCE study

From help to create or buy a company (Aide à la reprise et à la création d’entreprise, or ARCE in French) to return-to-work allocations (Allocation d’aide au retour à l’emploi, or ARE in French), there are already several types of aid you can enjoy to create a company when you find yourself unemployed.

Among those financial aids, NACRE is a somewhat different system, and let’s see why.

Launched in 2009, NACRE is a public aid system designed for job seekers or recipients of welfare benefits (minima sociaux) to create or take over a company.

It’s both free and long-term. This system is funded by public authorities and implemented by an organization approved by the French State and the Caisse des dépôts et consignations. Through this system, you get personalized support over 3 years and become eligible for an interest-free loan.

To benefit from this aid as a job seeker, you can directly get in touch with NACRE or go through return-to-work structures, such as the Pôle Emploi agency.

Although this system is open to many budding entrepreneurs, certain conditions still need to be met to be eligible.

To benefit from NACRE, you need to either be getting a job seeker’s allowance or receiving one of the following:

• a return-to-work allocation (ARE),
• a professional security allowance (Allocation de sécurisation professionnelle or ASP in French),
• an Active Solidarity Income (Revenu de solidarité active or RSA in French)
• or a Specific Solidarity Allowance (Allocation de solidarité spécifique - ASS in French).

You can also qualify for NACRE if you meet one of the following criteria:

• you’re between 18 and 25 and don’t get unemployment benefits from Pôle Emploi;
  • or under the age of 30 if you have a state-certified disability;
• you’ve been a registered job-seeker for more than 6 months in the past 18 months but do not receive unemployment benefits;
• you’ve signed a business creation support contract (Contrat d'appui au projet d'entreprise or CAPE in French);
• you receive the shared child education benefit (prestation partagée d’éducation de l’enfant or PreParE in French);
• you’ve created or taken over a company in a city priority zone (Quartier prioritaire de la politique de la Ville or QPPV in French).

In addition to the above eligibility criteria, there are a few other reasons your application could not be approved.

First, you need to be either the head of the company or hold at least a third of the shares. For instance, if you’re creating a new company, you and the others applying to NACRE need to own over 50% of the company’s shares, with at least 35% minimum in your own name. Another option is to own at least 33,3% of the business capital, of which at least 25% needs to be personally held (i.e. not held in the name of another company, a legal guardian etc.).

In addition, the structure you apply to will assess your application and may decide to reject granting you the NACRE aid on one of the following grounds:

• you wouldn’t have any difficulty finding work again;
• your project isn’t viewed as economically viable;
• the structure lacks sufficient resources to support you (as being able to help you in your business creation process is a crucial aspect of this public aid).

A study (link in French) showed that 20% of would-be French entrepreneurs give up on their project after only carrying out a few steps. Complex administrative hurdles to jump over, the requirement of a significant financial investment, and lack of support are chiefly to blame.

So, the 3-pronged NACRE aid program was created specifically to address these difficulties.

The same study also showed that one of the most common fears future entrepreneurs share is not knowing how to do it. So, in its first phase, NACRE helps company creators kickstart their projects.

This phase can last up to 4 months for company creation and up to 6 months in the event of a takeover. It’s dedicated to:

• putting the finishing touches on the technical aspects of the project so that it can be presented to other stakeholders (such as partners, investors, and so on);
• going over how to implement the project (such as foreseeing possible difficulties).

Another key factor causing entrepreneurs to give up on their dream of creating a business is that it requires too much funding. That’s why NACRE’s second phase is dedicated to assessing your project’s financial and economic structure and providing financial aid.

Like the previous phase, this phase lasts up to 4 months (company creation) or 6 months (when taking over a company). During that time, you’ll work with them on:

• making sure your idea is economically sound;
• working out the details of how you’ll finance it;
• reaching out to banks to secure the right financing.

In combination with that bank financing, you can also get financial aid from NACRE in the form of an interest-free loan. This type of loan is very helpful to finance your project, as neither guarantees nor any collateral is required by NACRE.

Lastly, many potential entrepreneurs don’t go ahead with their business creation or takeover ideas because they’re too scared of failing.

But, as many studies have shown, the best way to ensure new business creations don’t fail is through the right support. For that reason, step 3 of the NACRE program is all about offering dedicated support to the business creators it approves.

Over 3 years maximum, in 1-year renewable instalments, you’ll get regular one-on-one mentoring sessions with business professionals. During these sessions, you’ll get help to foresee and solve any possible difficulties as well as targeted guidance to help you make the right choices.

Administrative hurdles shouldn’t be why your business creation idea never comes to fruition. Here are the different steps to follow to apply for NACRE and benefit from its offer.

Since 1 January 2017, regions have been the ones in charge of implementing the NACRE system (it used to be the State’s prerogative).

So, to benefit from this public aid, your first step is to get in touch with the relevant structure, which can be:

• the Trade and Industry Chamber (Chambre de commerce et d’industrie or CCI in French);
• French entrepreneurial networks, such as ensemBle pour aGir et Entreprendre (BGE in French);
• certified public accountants.

To find the right structure in your area, it’s best to get in touch with either your Regional Council (Conseil Régional) or the Regional Office for Enterprises, Competition Policy, Consumer Affairs, Labour and Employment (Direction régionale des entreprises, de la concurrence, de la consommation, du travail et de l’emploi or DIRECCTE in French). You can find how to contact them here.

Once you’ve determined who to get in touch with, especially as an auto-entrepreneur or microentrepreneur, it’s time to apply for the program formally. This can be done either:

• by applying yourself;
• via a recommendation by a banking institution or Pôle Emploi.

To that end, reach out to one of the NACRE operatives in your area or the region where you’re planning to establish the company.

Last but not least, when your application for NACRE is approved, you’ll sign a contract with the specialized structure mentoring and working with you. In this contract, you’ll find details on how exactly the NACRE program will support you.

In summary, the NACRE program supports you at all steps of your entrepreneurial project, from writing a business plan to its launch. If your project seems economically viable and you fit their eligibility criteria, don’t hesitate to contact a qualified structure working with NACRE to start your application process.

As for us at Qonto, we’ll be waiting for you on the other end once your company is ready to be created, with a business account fully tailored to your business needs.