Want to know more about Starteo?
For whom?
This loan is intended for small businesses, private individuals and legal entities alike. It is intended for the principally self-employed and for small companies carrying on their activities for less than four years. If it is a question of a legal entity, this criterion applies both to the entity itself and to the people running the company.
For What Purpose ?
This loan is intended for the financing of tangible, intangible and financial investments (for example the purchase of a majority of shares), or for the financing of the working capital requirement accompanying the launching of the business or the implementation of the investment project concerned.
The Participation Fund only finances new investments and does not accept the refinancing of commitments made with other finance companies, whether it is a question of recovering outstandings or of reorganising them.
For the real estate investments, the Fund will intervene only for the business part of the property, preferably proven via an appraisement. Moreover, real estate purposes will be taken into account only for personal occupancies. The Fund will not intervene for properties that will be (partly) rented for business purposes..
Starteo can also finance the take-over of activities by starters, private individuals and legal entities alike, insofar as they can be regarded as a small company, including the company to be taken-over or that has been taken-over.
The loan must be intended for the financing relating to the transfer of a company. The transfer of a company is taken to mean the transfer of a PE or a self-employed activity operated by a private individual or by a legal entity.
If the transfer relates to an activity carried on by one or more private individuals, the company will be taken over in its entirety or the entirety of the participation of each assignee in so far as the taker-over obtains the majority of the company in the final analysis.
If the transfer concerns a legal entity, the entirety of the commercial business or the majority of the actions will have to be taken over. In the event of a take-over of the majority of the shares, the taker-over must moreover carry on the daily management of that business, aside from the grantees
Maximum amount
The maximum amount of the Participation Fund loan is equal to smallest of the following amounts::
- The amount of the loan granted by the bank itself;
- 4 times the amount of the personal contribution;
- € 250.000.
However for take-overs of companies by the purchase of shares, this latter ceiling is taken to €350,000, limited
- To the amount of the loan granted by the credit organisation,
- 35% of the business investment if the amount of the requested intervention exceeds € 250,000
The applicant’s own contribution must account for at least 10% of the total investment.
The Participation Fund’s intervention must reach a minimum of €7,500.
Under 30 ?
Are you under thirty, a job seeker, and would like to have recourse to a Starteo to set yourself up as self-employed for the first time? Thanks to the Young Self-Employed Plan, you can benefit from free support during the first 24 months of your activity. This free support is provided by a mentoring structure of your choice, insofar as it has been approved by the Participation Fund.
Period
The period of the loan is 5, 7 or 10 years and depends on the nature of the investment to be financed. The period of the accompanying bank loan will under no circumstances be shorter than that of the Participation Fund’s loan less two years. As an example, a 7-year loan from the Participation Fund could be combined with a bank loan repayable in 5 or 6 years..
Interest rate
The Participation Fund’s interest rate is equal to the rate applied by the bank less 1.25%, with a floor equivalent to the Belgium Prime Rate, established weekly. Het Participatiefonds bepaalt die rentevoet eenmaal per week.
The interest rate is applied as from the opening of the credit. This rate is fixed for the entire period of the credit
A rate reduction is granted during the first two years. This reduced rate is currently 3%. After this period, the rate defined in the credit line is applied in full.
Repayment
Two repayment methods are possible:
- Variable monthly or quarterly repayments (constant capital/reducing interest)
- Constant monthly repayments (progressive capital/reducing interest)
In addition, at the entrepreneur’s request, a period of capital repayment grace may also be granted for one to two 2 years.
Guarantees
The Participation Fund adopts a flexible attitude with regard to guarantees.
Like any credit institution, we analyse this question on a case-by-case basis. The guarantees depend on the credit risk and refer only to the elements relating to the project. The Participation Fund philosophy with regard to loans is quality-related (applicant/project). It is not in the philosophy of the Participation Fund to grant loans only on the basis of the available guarantees. If we ask for guarantees, we make sure that the ensuing expenses are as limited as possible (for example: a mortgage mandate rather than of a mortgage registration).
Subordination
In practice, subordination means that the Participation Fund’s loan is tantamount to capital. Indeed, subordination decreases the risk for the other creditors. Ordinary bank credit is therefore easier to obtain.
At the legal level, the subordination of the loan can be described as follows: subordination means that the Participation Fund waivers being treated on an equal footing with the other creditors. In the event of contest, and therefore when several creditors put forward their requirements simultaneously, the Participation Fund accepts that the other creditors be refunded in the first place. However, this is not valid for the leaders of the company, the associates or the managers of the association or the company, the non-institutional creditors without fixed-date receivables, with the exception of suppliers whose proof of receivables is in conformity with the rules of commercial law.
Sectoral Restrictions
According to the legislation in force for the Participation Fund, all sectors are allowed.
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.
Additional Information
If, once you have read these explanations on Starteo, you still have some questions, you could contact our Analysis Department (dossiers@fonds.org).