Equipment loans

Beneficiaries

Equipment loans are targeted at companies, having a business permit issued pursuant to the law regulating the access to the occupations of craftsman, tradesman, industrialist, certain liberal professions or having an authorization under the terms of another legal provision, while respecting the criteria of small and medium-sized company as defined by the Community dispositions on the matter.

Purpose

Equipment loans are granted for the financing of professional equipment, including safety or environmental protection equipment, as well as land which is used exclusively for professional purposes. Parts of buildings acquired for nonprofessional usage, motor vehicles as well as inventories are excluded from the benefit of equipment loans.

Fixing of loan amounts

Equipment loans can cover between 25% and 60% of the eligible investment cost and up to 75% in the case of business start-ups.
Minimum investment: 12.500 euros, except in the case of business start-ups (first three financial years) where there is no minimum investment required.
The maximum loan amount by project is 2.500.000 euros, except special authorisation by the Ministers of Finance and of the Economy.

Duration

The duration of the equipment loan is fixed according to the nature of the investment with a ten years maximum. Whenever the real estate part of the investment equals or exceeds 75%, the duration can be extended to 12 years. In the case of setting up of companies or comparable operations like the transfer or the resettlement of companies, the acquisition or the extension of buildings, the duration can be extended to 14 years.

Interest rate

The interest rate is fixed over the total duration of the equipment loan. Currently the interest rate stands at 1.5%.

Repayment

Quarterly repayments are linear. A grace period between six and twelve month for repayment of the capital may be granted in individual cases.

Guarantees

Investors are generally required to provide tangible and/or personal guarantees where appropriate.

Disbursement

Equipment loans are disbursed (on the basis of invoices and other relevant documentation) in maximum three instalments in proportion to payments made under the investment project.

Applications

Applications for equipment loans are submitted to SNCI via the applicant's usual bank.