Want to know more about Optimeo?
For Whom?
This loan is intended for existing companies, as well as for single-person companies and private individuals, insofar as they meet the small company criteria. Optimeo contributes to the financing of company expansion.
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 real estate investments, the Fund will intervene only for the business part of the property, shown 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.
Optimeo can also finance the renewal of activity by businesses in their development phase, either private individuals or legal entities, insofar as the economic group taken over is an SC (Small Company).
The loan must be used for the financing relating to the transfer of a company. The transfer of a company is taken to mean the transfer of an SC or a self-employed activity run by a private individual or 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 the smallest of the following amounts:
- the amount of the loan granted by the bank itself;
- 3 times the amount of the personal contribution;
- € 250.000.
However for company take-overs via the purchase of shares, this latter ceiling can be taken to €350,000, limited:
- to the amount of the loan that the bank grants;
- to 35% of the business investment if the amount of the intervention requested from the Participation Fund is more than €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.
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 6 or 5 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. This reference rate is fixed over the entire period of the credit.
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, a period of capital repayment grace may also be granted to the applicant entrepreneur during 1 to 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’s 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 Optimeo, you still have some questions, you could contact our Analysis Department (dossiers@fonds.org).