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FAQ - definitions

How Can I Obtain An Application Form?

You can apply for an Initio loan by using the credit application form under Forms. This form should be completed by the applicant with the help of an IPCF-approved accountant (tax expert), an outside IEC-approved chartered accountant or an IRE-approved company auditor.

Do All Sectors Come Into Consideration?

According to the legislation in force in relation to the Participation Fund, all sectors are allowed. However, the European Commission’s Regulation 1998/2006 of 15/12/06, on the application of Articles 87 and 88 of the EC treaty on de minimis aid does however apply to the Participation Fund. It imposes restrictions on the agriculture, transport and export sectors. We would invite you to get in touch with our Starters counter for any further information on this subject (starters@fonds.org).

For Which Investments Can The Participation Fund Intervene?

The Participation Fund can intervene for all the investments (purchase of equipment, take-over of shares, take-over of business assets, purchase of stocks, working capital, start-up expenses), except for the purchase or the construction of real estate properties.

For Initio, Real Estate Investments Are Excluded. Can The Loan Be Used To Finance Alterations To A Building?

The use of an Initio loan for financing building alterations (work that entails changes to the very structure of the building itself) is limited to 10% of the total investment amount. If the alterations are envisaged in the budget for a higher amount, you would have to contact our departments beforehand in order to check the admissibility of the application.

What Are The Evaluation Criteria?

The Participation Fund decides whether or not to grant the credit on the basis of the following criteria:

The project’s chances of success, at the financial, economic, technical, commercial and organisational levels alike;
The professional skills and standing of the applicant/entrepreneur, and his or her profile;
The possibility for the entrepreneur of meeting his or her obligations while respecting his or her financial commitments (repayment capacity).

In The Context Of The Initio Loan, What Does The Additional Bank Loan Period Have To Be?

The period of the credit organisation’s additional loan must be at least equal to the period of the Initio loan less one year.

How Long Does It Take To Learn Of The Board’s Decision?

The Participation Fund processes files in chronological order, according to the introduction date of a complete file. The Fund ensures that the files are processed as quickly as possible. A Credit Committee meeting takes place each week in order to rule on the credit applications.

What Is The Timeframe Between The Decision And The First Availability Of The Loan?

When the Board of Directors approves an Initio loan application, the customer receives a letter from the Participation Fund spelling out all the terms and conditions. The customer has a two-month period for contracting an investment loan with the bank of his or her choice. This credit is complementary and partly covers the financing of the investments, in accordance with the financing plan submitted with the application. The customer has to provide the Participation Fund with a copy of the letter confirming the credit. The customer has a one-year period as from the approval to draw down the Initio loan.

Do All Credit Organisations Collaborate With The Participation Fund?

In the context of the Initio loan, the investment loan can be contracted with any credit organisation active in Belgium, whether the latter has signed a partnership agreement with the Participation Fund or not.

On What Basis The Money Made Available? Is It Paid Directly Into My Account Or To The Supplier?

The basis of the payment of the credit is the investment and financing plan included in the credit application. The customer will first have to invest his or her own contribution, then the bank credit and finally the Participation Fund’s loan. The Participation Fund makes the payments to the beneficiary directly (supplier, notary, customer itself,…) on the basis of supporting documents.

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