Beneficiaries
Companies in possession of a business permit for commercial activities, skilled trades, industrial activities and certain liberal professions (issued in accordance with the Law of 2 September 2011), as well as other professions or activities covered by other specific legal permits can benefit from an equipment loan. Companies must also respect the criteria of small and medium-sized enterprises, as defined by EU Community recommendations.
Purpose
Equipment loans are granted for financing assets (professional equipment, including safety or environmental protection equipment) and plots of land used for business purposes only. Parts of buildings acquired for non-professional use, vehicle fleet, stock (raw materials and finished products) are not eligible for cover by an equipment loan.
Loan amount
Equipment loans can cover between 25% and 60% of eligible investment costs, and up to 75% in the case of business startups.
Minimum investment: EUR 12,500, except in the case of business startups (in their first 3 years of existence), where no minimum investment is required.
Loans cannot exceed EUR 2,500,000 per project, except in the case of special authorization from the Ministers of Finance and Economy.
Duration
The duration of an equipment loan is fixed according to the nature of the investment, with a maximum of 15 years.
Interest rate
Equipment loans carry a fixed interest rate for the total duration of the loan. The interest rate currently stands at 2%.
Disbursement
Equipment loans are disbursed (on the basis of invoices and other relevant documentation) in a maximum of 3 installments in proportion to payments made under the investment project.
Repayment
Repayment is linear, made in fixed quarterly installments. A grace period of between 6 to 12 months on the repayment of the capital may be granted in individual cases. Early repayments incur no fees or penalties.
Guarantees
Personal guarantees or security interests are requested from investors where necessary.
Application
Applications for equipment loans must be submitted to SNCI via the applicant’s usual bank.