Are you looking for financing for your Brussels SME? Have you heard about the Proxi loan ?
In this article, we tell you all you need to know about the Proxi loan: amount of the loan, repayment, benefits, interest rates, terms and conditions, how it works and who to contact.
You will see that the Proxi loan scheme imposes ceilings on both the maximum amount of finance and the interest rate offered to remunerate lenders.
If your needs exceed the limits of the Proxi loan, you have the option ofan alternative for financing your business : the BeeBonds crowdlending platform allows you to lift 500,000 to 5,000,000 euros by going public.
How can we mobilise Belgian savings?
At the end of June 2020, savings account deposits in Belgium totalled €291 billion.
How can these household savings be mobilised to support the real economy? To help businesses strengthen their equity capital and encourage private individuals to take the plunge, the three Regions have adopted financing mechanisms for businesses located in their territory.
Company financing: Regional incentives
In the Brussels-Capital Region, the Proxi loan was launched in record time in the context of the health crisis, at the instigation of the Brussels government and the Secretary of State for Economic Transition, Barbara Trachte.
This is a scheme equivalent to the "coup de pouce" loan in Wallonia: it enables businesses to obtain finance on attractive terms from private individuals. Your company can use it to mobilise private savings, which are just waiting to find projects to finance, on attractive terms.
How much can you get with a Proxi loan?
The maximum amount that can be mobilised is 300,000 euros until 31/12/2021 (all proxi loans combined). After this date, the maximum amount is €250,000.
In this, Brussels goes further than the other two Regions. The lender can lend a maximum of €50,000 per year up to a maximum of €200,000.
For the borrowing company, the repayment schedule can be chosen: monthly, quarterly, half-yearly, annually or at the end of the loan.
How does the Proxi loan work in Brussels?
Are you self-employed or the manager of an SME with an economic activity based in the Brussels Region? You can take out a low-interest loan from a private individual with :
- a fixed term of 5 or 8 years
- a maximum limit of 250,000 euros for the borrower.
The rate charged is at the same level as those charged in the other two Regions, the prêt coup de pouce in Wallonia and the Winwinlening in Flanders. It is a minimum of 0.875% and a maximum of 1.75% (statutory rate in force for the 2020 tax year).
Proxi Loan: What are the advantages for the lender?
For individuals, supporting a business with a Proxi loan offers a number of advantages:
- A benchmark interest rate (in principle higher than the return on savings) ;
- An annual tax benefit of 4 % for the first 3 years and 2.5 % for the remaining years;
- Under certain conditions, a one-off annual tax credit of 30 % on the principal permanently lost in the event, for example, of bankruptcy.
The satisfaction of helping a self-employed person or a company
In practical terms, who should you contact?
The borrower and the lender must sign a deed of loan, drawn up using aan online form on the Finance Brussels website which manages the scheme.
The procedure to follow and the answers to questions are clearly set out on the Finance Brussels website.
For more information, you'll find a FAQs section and a simulation module.
Alternative: What is the difference between a proxi loan and BeeBonds financing?
| Proxi Loan | Crowdfunding |
| For individual lenders only | Open to individual and corporate (legal entity) lenders |
| Interest rate: Minimum 0.875% and maximum 1.75 % (gross statutory rate in force for the 2020 tax year) | No maximum interest rate. Average gross annual interest rate: 7.7% |
| You can borrow up to €300,000 (including all proxi loans). | Financing from €500,000 to €5,000,000 |
| Duration: 5 to 8 years. | Duration: 3 to 5 years. |
| The loan is subordinated. | The loan may or may not be subordinated. |
| The lender can benefit from an annual tax advantage of 4 % for the first 3 years and 2.5 % for the remaining years. Under certain conditions, the lender can benefit from a one-off tax credit of 30 % on the principal permanently lost in the event of bankruptcy, for example. |
How do I apply for funding from BeeBonds?
Whether your company is based in Brussels or elsewhere in Belgium, you can use the BeeBonds platform to raise equity finance.
It's easy to apply. Fill in our online form and we will get back to you as soon as possible.
Once your application has been validated, a campaign can be launched within a few weeks, enabling companies using the platform to BeeBonds crowdlending obtain rapid financing.
Want to support an SME? Discover the projects currently being financed on the BeeBonds platform.
