Start up Loans

Beneficiairies

Any crafts or commercial SMEs of any legal form which have either been recently incorporated or taken over can benefit from a start up loan (prêt de création) or business transfer loan (prêt de reprise). Beneficiaries shall possess a valid business permit issued by the Ministry of the Economy. A business plan and a financing plan (evidencing a funding from the beneficiary of at least 15% of eligible costs) should be submitted.

Already established entrepreneurs as well as activities which do not need an authorization from the Ministry of the Economy (as defined in the law of September 2, 2011) are excluded from a start up loan (prêt de création).

Notwithstanding, established entrepreneurs can benefit from a start up loan within the framework of a business transfer (prêt de reprise).

Eligible costs

All expenses incurred during the realization of a given business plan by newly created SMEs or recently taken over SMEs are eligible. Land, buildings or parts of buildings used for professional activities, machines, professional equipment, intangibles such as licences, software, set up expenses, business plan related costs, goodwill, inventories, provided that the activity has not yet started at the time of the application.

Fixing of loan Amounts

The start up loan can go from EUR 5.000 to EUR 250.000 without exceeding 40% of eligible costs. Investments that have benefited from a start-up loan may not be taken into account for any investment loan from SNCI.

Duration

Generally, duration is 7 years. However, if the project comprises an important part (more than 50% of eligible costs) of fixed assets, the duration can be extended.

Interest rate

The applicable rate is a rate varying according to the general evolution of market rates. Currently the interest rate stands at 4%.

Disbursement

The start up loan is disbursed in one shot immediately after the financing plan is concluded.

Repayment

In principle, repayment is being done by constant quarterly instalments, the first instalment being due between six and twelve month after the date of the signature of the contract. Early reimbursements can be done without fees or penalties.

Collaterals

No real collateral will be asked for, but a personal, solidary and indivisible declaration of surety is required.

Application 

The application has to be sent directly to SNCI. A presentation of the applicant, a business plan, a detailed costing as well as a financing plan have to be included.