Want to know more about Business Angel+?
For Whom?
This form of loan is intended for private individuals and legal entities alike, provided that they constitute a small business. The Business Angel+ loan is intended for entrepreneurs whose company is in a launch phase, or which has reached a stage of strategic development for the future of the business, and which does not have access to traditional bank credit because of the innovative or technological nature of the project, but which on the other hand enjoys the financial support of one or more Business Angels.
When this goes hand in hand with the constitution of a company, the applicant must own the majority of the shares and be responsible for its daily management.
For Which Purpose?
This loan is intended for the financing of tangible, intangible and financial investments, or for the financing of the working capital requirement accompanying the launch of the business or the implementation of the investment project concerned.
In theory, this loan does not finance Research and Development projects.
Maximum Amount
The maximum amount of the loan is €125,000.
The Participation Fund’s intervention must reach a minimum of €7,500.
Business Angel and Creator/Entrepreneur Contributions
The contributions are in theory made in cash. In total, the contributions from the Business Angel(s) and the creator/entrepreneur(s) must be higher than or equal to the Participation Fund’s loan.
The contributions of the Business Angels involved in the calculation cannot be borrowed from third parties and are made, in theory, in the form of paid-up capital. If they are made partially in the form of “shareholder” advances, these must be subordinated to the Participation Fund’s loan
Period
The period of the loan is 5, 7 or 10 years and depends on the nature of the investment to be financed..
Repayment
Two repayment methods are possible::
- Variable monthly or quarterly repayments (constant capital /decreasing interest)
- Constant monthly repayments (constant capital /decreasing interest)
In addition, a period of capital repayment grace is granted during 1 to 3 years, according to the nature of the project
Interest Rate
The Participation Fund applies its reference rate for loans of 5, 7 or 10 years, to which a margin of 1% is added..
If the period of capital repayment grace is more than a year, the margin will be increased to 1.25% for the entire period of the loan
Guarantees
The Participation Fund adopts a flexible attitude with regard to guarantees.
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 Participation Fund’s philosophy 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 a mortgage registration).
Project submission to the Participation Fund
The projects are preselected by the BAN (Business Angel Network), which proposes them to potentially interested Business Angels.
The Participation Fund gets involved in the process only when the projected association between the entrepreneur and the Business Angel is nearing conclusion.
Subordination
In practice, subordination means that the Participation Fund’s loan is tantamount to capital. Indeed, subordination decreases the risk for 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 competition, and therefore when several creditors put forward their requirements simultaneously, the Participation Fund accepts that the other creditors receive priority refunding. However, this is not valid for the leaders of the company, the associates or the managers of the association or the company or 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 15/12/2006, 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 BA+, you still have some questions, you could contact our Analysis Department (dossiers@fonds.org).