Start Loan

The Start Loan is intended for all newly started or start-up companies, self-employed or liberal professionals.
A starter is:
– a natural person who has not yet exercised the self-employed activity for more than 4 years in main occupation;
– a company of which at least one of the shareholder-directors has not been established in main occupation for more than 4 years.

An entrepreneur who was already self-employed in the main profession in the past is still considered a starter after a break of at least 2 years (as a wage-earner, job-seeker, etc.).

An entrepreneur who has been established as a self-employed person in a main occupation for more than 4 years and is reorienting himself by starting a new activity that is substantially different from the previous activity and is in a different sector is still considered a starter.

A trainee in the exercise of a liberal profession is also eligible for a Start Loan when establishing as a self-employed person in a main occupation.

A student self-employed person is the only status that does not have to establish itself in main occupation to qualify for a Start Loan.

A non-working jobseeker for three months, an unemployed person entitled to full benefit or a beneficiary of a living wage is eligible for a Start Loan On presentation of a valid certificate (to be requested from the VDAB or another competent authority), the following benefits apply:
– the term of the Start Loan is at least 5 years;
– PMV does not require any guarantees to cover its risk;
– the own contribution may be financed in full or in part by a credit or microcredit institution up to a maximum of EUR 10,000;
– retention of the right to unemployment benefit in the event of cessation within 15 years of self-employment;
– remission of the credit up to 40,000 euros in case of cessation of the activity and proof of lack of viability of the activity.

The Start Loan is granted to natural and/or legal persons in the context of financing investments on the territory of the Flemish Region or activities of an operating office of the company concerned located in the Flemish Region. To be eligible for financing, these activities must have a clear added value for Flanders.

The start-up company meets the European SME definition.

A non-profit association (VZW) only qualifies for a Start Loan if it performs an economic activity.

Would you like to know whether you qualify for a Start Loan? Then check out our handy Start Loan checklist for natural persons or companies below.

The Start Loan is intended to finance tangible, intangible and financial investments, as well as working capital requirements at the start of the activity or the realisation of the relevant investment project or expansion of the activity.

The Start Loan can only be used for new investments (including replacement investments, second-hand equipment) but not for refinancing existing commitments with credit institutions, nor for refinancing or payment of other existing debts, whether overdue or not. An outstanding debt less than 3 months old at the time of receiving the application is not considered an existing debt.

Certain activities and purposes are excluded for financing through a Start Loan. Check the checklist below to see if your activity is eligible.

Amount

The maximum amount of the Start Loan is equal to the lesser of:

• 4 times the own effort
• 100,000 euros

The own effort or own contribution is the applicant’s personal cash share in the financing of the investment project to be realised. A contribution in kind can be accepted, provided the assets were acquired with own funds no more than 6 months before receiving the application. These investments must be adequately documented.

The own contribution may not be borrowed, with the exception of:
– An own contribution via a Winwin loan provided it is (i) repayable once at final maturity, and (ii) granted by a family member of the applicant in the first or second degree;
– An own contribution financed by a credit or microcredit institution of maximum 10,000 euros on presentation of a valid Start Loan certificate.

Term

The term of a Start Loan is minimum 3 and maximum 10 years.

Fixed interest rate

The interest rate is fixed and is currently 3,5% per year.

Repayment

Interest payments and repayments of capital are made by fixed monthly repayments.

By default, there is an exemption from capital repayments during the first year after withdrawal. Subject to substantiation, the period of exemption from capital repayments can be extended to two years. In this case, the fixed interest rate is increased by 0.25% to 3.25%.

Subordinate nature

The Start Loan is subordinated to all loans from financial institutions. In case of payment problems or bankruptcy, the Start Loan will only be repaid after all bank loans have been repaid. Banks therefore consider the Start Loan as an extension of equity and a strengthening of your company’s solvency.

Guarantees

Exceptional guarantees are requested for the Start Loan. The possible guarantees are determined in function of the credit risk and concern only the elements relating to the project.
If guarantees are requested, care is taken to minimise their cost to the customer (for example: a mortgage mandate instead of a mortgage subscription). Solidary guarantees are limited to the guarantees of the active partners.

Combination with Cofinancing

A Start Loan can be combined with cofinancing (or vice versa) provided a valid Start Loan certificate can be presented, the combined amount of all credits does not exceed 350,000 euro and a minimum own effort of at least 10% of the total investment requirement.

If you as a borrower (natural person) do not meet all these 9 requirements, PMV cannot consider your application for funding:

1. You must be self-employed in principal occupation. A student entrepreneur (student self-employed status) does not need to be self-employed in principal occupation to be eligible for funding.
2. You must have an exploitation address in the Flemish region, or be able to demonstrate added value for the Flemish region.
3. You must have a residence permit with a residual duration of at least 2 years if you do not have EU nationality.
4. You must be the economic beneficiary of the credit you are applying for.
5. You must have an economic activity operated under the form of a sole proprietorship or a company to be incorporated in the context of obtaining financing.
6. You must not have a current financing with LRM. There is a prohibition on cumulating financing from LRM and PMV.
7. Nor may you have significant overdue debts with other financiers, NSSO, VAT, taxes….
8. You must not be involved in an unconcluded bankruptcy or be excusable in a concluded bankruptcy.
9. You must have been active in principal occupation for less than 4 years at the time of the financing application.

As a borrower (natural person), you must not be active in one or more of the following excluded activities:

1. fishing and aquaculture;
2. primary production (cultivation) of agricultural products (if you process agricultural products in addition to cultivation, you do qualify for financing);
3. arms trade, tobacco, gambling or pornographic industry (newspapers, night shops and other shops where the sale of products from the sector concerned only constitutes a limited part of the turnover do qualify for financing);
4. activities that are illegal under Belgian or international law;
5. the production or distribution of spirits (newspapers, night shops and other shops whose sales of the products concerned only represent a limited part of their turnover do qualify for funding);
6. IT for unauthorised access to data networks or illegal downloading;
7. human cloning for research or therapeutic applications;
8. genetically modified organisms.

• the refinancing of existing debts older than 3 months (example: supplier debt) at the time of credit application – bank credits are not refinanced;
• the financing of trading activities (the trading of goods that takes place mainly in an import/export environment, with or without a speculative purpose);
• the financing of funds serving as collateral for (obtaining) a guarantee;
• the financing of real estate projects intended for sale or rental to third parties (financing of business centres, (the operation of) hotels, holiday parks, etc. does qualify because of short-term rental services to third parties; the financing of real estate projects intended for rental to affiliated companies also qualifies;
• the financing of research and development (for already existing companies with a proven track record of positive results, working capital financing for R&D purposes may be considered in the context of expanding activities);
• the financing of products or services that are not yet commercialisable (this is the successful completion of the test phase, technical testing of the prototype and the like);
• the financing of the acquisition of a minority stake in the acquisition of shares (the majority of shares must be acquired or by acquiring additional shares, the majority must be obtained);
• the financing of the acquisition of part of a trading fund (the trading fund must always be acquired in its entirety);
• the financing of the establishment and operation of a sales network abroad;
• the financing of exports;
• the financing of rolling stock intended for road haulage for third parties;
• the financing of transactions in which the applicant appears on both sides of the transaction.

The credit applied for must meet the following characteristics:

• The credit shall not exceed 4 times the applicant’s own contribution.
• The credit amounts to a maximum of EUR 100,000 in the case of a Start Loan.
• The credit amounts to a maximum of EUR 350,000 in the case of a Cofinancing.
• The credit amounts to a maximum of 700,000 euros in the case of a Cofinancing+.
• The credit together with other loans from PMV shall not exceed EUR 700,000.
• The credit amounts to a maximum of 50% of the total financing in the case of a Cofinancing or Cofinancing+.
• The credit together with other public financing does not exceed 50% of the total financing.
• The credit is accompanied by an own contribution of at least 10% of the total financing in case of a Cofinancing or Cofinancing+.
• The credit is accompanied by an approved cofinancing of at least 20% of the total financing in case of a Cofinancing or Cofinancing+.
• An approved cofinancing is a long-term financing from a PMV-approved cofinancing party such as a bank, an investment fund, a business angel, a crowdfunding platform….

1. The company must be an SME: the number of employees must be less than 250 and the balance sheet total must be less than EUR 43 million or turnover less than EUR 50 million. If your company belongs to a group of companies, the figures will be looked at on a consolidated basis. The figures of participations of less than 25% are not included. The figures of participations between 25% and a maximum of 50% are included pro rata the share percentage. The figures of a venture capital company, university, institutional investor or a small local authority holding 25-50% of the borrower’s capital or voting rights are not included. The figures of shareholdings of more than 50% are fully counted.
2. The company has an operating seat in the Flemish region or must have a demonstrable added value for the Flemish region.
3. The company must be the economic beneficiary of the credit. The credit must be used to finance the borrower’s activities and not to finance a related company.
4. The company must have an economic activity. An NPO with an economic activity is eligible.
5. The company must have at least one self-employed person in principal occupation as manager or director who must be responsible for day-to-day management, own a significant share of the capital and be the economic bearer of the project.
6. The company may not have any current financing with LRM. There is a prohibition on cumulating financing from LRM and PMV.
7. The company must not be in collective insolvency proceedings.
8. The company must have filed its annual accounts within the legal deadline.
9. The company must have equity of more than EUR 61,500 in the case of a public limited company. The assessment is made on the basis of the company’s most recently available figures. The negative equity of a BV or CV must be sufficiently compensated with quasi-equity.
10. The company has a solvency of at least 10% after investment in the case of co-financing or co-financing+. Solvency is the ratio of equity to the company’s balance sheet total. Equity is adjusted with subordinated (share) holder loans (+) and current accounts assets of the managers/directors (-).
11. The company has no significant overdue debts to other financiers, NSSO, VAT, taxes, etc.
12. The company has no manager or director involved in an unclosed bankruptcy.
13. The company has director(s) with a residence permit of a residual duration of at least 2 years if they do not have EU nationality.
14. The company has been active for less than 4 years in the case of a Start Loan. An applicant has been active for less than 4 years if at least one of the managers or directors has been established as a self-employed person in main occupation for less than 4 years.

• fisheries and aquaculture;
• primary production (cultivation) of agricultural products (businesses that process agricultural products in addition to cultivation are eligible for financing);
• arms trade, tobacco, gambling or pornographic industry (newspapers, night shops and other shops whose sales of the products concerned only represent a limited part of their turnover do qualify for financing);
• economic activities that are illegal under Belgian or international law;
• the production or distribution of spirits (newspapers, night shops and other shops whose sales of spirits represent only a limited part of their turnover do qualify for financing);
• IT for unauthorised access to data networks and illegal downloading;
• human cloning for research or therapeutic applications;
• genetically modified organisms.

• the refinancing of existing debts older than 3 months (example: supplier debt) at the time of credit application – bank credits are not refinanced;
• the financing of trading activities (the trading of goods that takes place mainly in an import/export environment, with or without a speculative purpose);
• the financing of funds serving as collateral for (obtaining) a guarantee;
• the financing of real estate projects intended for sale or rental to third parties (financing of business centres, (the operation of) hotels, holiday parks, etc. does qualify because of short-term rental services to third parties; the financing of real estate projects intended for rental to affiliated companies also qualifies;
• the financing of research and development (for already existing companies with a proven track record of positive results, working capital financing for R&D purposes may be considered in the context of expanding activities);
• the financing of products or services that are not yet commercialisable (this is the successful completion of the test phase, technical testing of the prototype and the like);
• the financing of the acquisition of a minority stake in the acquisition of shares (the majority of shares must be acquired or by acquiring additional shares, the majority must be obtained);
• the financing of the acquisition of part of a trading fund (the trading fund must always be acquired in its entirety);
• the financing of the establishment and operation of a sales network abroad;
• the financing of exports;
• the financing of rolling stock intended for road haulage for third parties;
• the financing of transactions in which the applicant appears on both sides of the transaction.

• The credit shall not exceed 4 times the applicant’s own contribution regardless of the credit type applied for.
• The own contribution is at least 10% of the total financing in case of a Cofinancing or Cofinancing+.
• The credit amounts to a maximum of 100,000 euros in the case of a Start Loan.
• The credit amounts to a maximum of 350,000 euros in the case of a Cofinancing.
• The credit amounts to a maximum of 700,000 euros in the case of a Cofinancing+.
• Together with other loans from PMV, the credit amounts to a maximum of EUR 700,000.
• The credit amounts to a maximum of 50% of the total financing in the case of a Cofinancing or Cofinancing+.
• The credit together with other public financing does not exceed 50% of the total financing.
• The credit is accompanied by recognised cofinancing of at least 20% of the total financing in the case of a Cofinancing or Cofinancing+. An approved co-financing is a long-term financing from a PMV-approved cofinancing party such as a bank, an investment fund, a business angel, a crowdfunding platform….

Financial institutions that have a cooperation agreement with PMV

Ban Flanders

Website Ban Flanders

communicatie@ban.be

Offices in all Flemish provinces and Brussels

The Harbour

Website The Harbour

info@theharbour.be

Offices in Ghent, Antwerp and Roeselare

Other Providers