Want to know more about the Solidarity Loan?
For Whom?
The Solidarity Loan is intended for people who would like to launch their own business but who have difficulty in acquiring the starting capital because of their financial position and do not have access to bank credit. It is a question, for example, of people who are benefiting from CPAS social security, integration income or unemployment benefit, without other income within the family. Asylum seekers, administratively in order for the exercise of a self-employed activity, may apply for an Solidarity Loan.
The recipient of an Solidarity Loan must be principally established as self-employed.
When this goes hand in hand with the constitution of a company, the applicant must have the majority of the shares and be responsible for its daily management.
The following factors in particular come into account:
- Becoming self-employed and working alone;
- Becoming self-employed and constituting with other associates, jobseekers or not, a company or an unincorporated association, where he/she becomes an active associate;
- Becoming self-employed and an active associate of an existing unincorporated association or company.zelfstandige worden en alleen werken;
The Solidarity Loan can only be granted to private individuals.
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.
Maximum amount
The maximum amount of the investment is of €12,500.
Period
The period of the loan is 4 years .
Interest Rate
The interest rate is fixed and amounts to 3%
Repayment
The Solidarity Loan is repaid by means of monthly payments..
After three months grace, the capital is repaid by means of 45 constant monthly payments..
The interest is calculated on the balance remaining due, is decreasing and must be paid monthly.
Guarantees
No guarantee is required.
However, the support of the entourage, possibly in the form of a guarantee or a “sponsorship”, will be regarded as a positive element of appreciation for the project.
Coaching
Coaching is envisaged at two levels:
- On the one hand, for the preparation of the application, the applicant calls upon a mentoring structure
- On the other, once the credit has been granted, in order to accomplish the formalities at the start of the activity, the general management of the independent company and the practicalities of the Solidarity Loan.;
Subordination
In practice, subordination means that the loan of the Participation Fund 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.
Accumulation
The Solidarity Loan may not be accumulated with any other loan, not even another kind of loan from the Participation Fund.
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 the Solidarity Loan, you still have some questions, you could contact our Starters Counter (starters@fonds.org).