Businesses in the industrial and service sectors who have a substantial impact on national economic development can benefit from medium and long-term loans. Potential beneficiaries must have equity amounting to at least EUR 25,000.
Medium and long-term loans are intended for the financing of professional equipment needed for production or service provision activities, including safety or environmental protection equipment, as well as land being used for business purposes only. Parts of buildings for non-professional use, vehicle fleets, and stock (raw materials or finished products) are excluded from the financing measure.
Projects for which a medium or long-term loan is requested must amount to at least EUR 100,000.
Minimum per project: EUR 25,000. Maximum per project: EUR 10,000,000 (unless special authorization is granted by the Ministers of Finance and Economy). Loans are usually for 25% to 30% of eligible investment costs.
The duration depends on the nature of investment, the maximum duration being 10 years. The borrower may choose between a medium-term loan (5 years) and a long-term loan (6-10 years).
A grace period of no more than 12 months for repayment of the capital may be granted in individual cases.
The interest rate applied is the SNCI prime rate at the time the loan contract is signed. This rate is fixed by the SNCI’s Board of Directors on the basis of the SNCI’s refinancing costs. It is net and free of all commissions and additional charges. The interest rate currently stands at 1.375% for medium-term loans and at 1.625% for long-term loans.
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 is made through fixed amount quarterly installments. Early repayments for part or all of the loan amount are possible at any time, and incur no fees or penalties.
Personal guarantees or security interests might be required.
Applications must be submitted directly to SNCI. Applications must include:
- a description of the company making the investment;
- a detailed description covering quantitative and qualitative aspects of the planned investment;
- the corresponding financing plan;
- a business plan for the next 3 to 5 years and the annual accounts for the past 3 financial years of the business.