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Financing a Business in Belgium

Obtaining finance for your new business in Belgium is a key part of your journey. Of course having your own accountant in Belgium that you can talk to is an important first step as they can offer advice on the best financial route. Your accountant wants your business to do well and can help you to investigate possible ways of obtaining finance.

• Personal finance once you have your business plan underway and suitable research obtained you can identify possible ways of using your own personal finance.
• Interest subsidies and capital contribution grants. The amount of these subsidies depends on a number of factors, notably the amount of the investment that can be subsidised, the sector of business, and the size and age of the company.
• Support for specific types of investment, such as those favouring the environment, permitting savings in energy and raw materials or investment of an innovative nature.
• Supplementary subsidies for investments favouring job creation.
• Tax incentives in Belgium
• European Aid grants are direct financial contributions from the EU budget or from the European Development fund.

For small to medium sized enterprises (SME) and the self employed there is The Participation Fund. It is federal public institution, that offers the following loans:

1. The Starteo Loan for companies that have been operating for less than four years. The loan will be no more than €250,000 at a preferential rate of 3% for the first two years. The loan will be granted for five, seven, or ten years and will never be more than four times the investment made by the business.
2. The Optimeo Loan Similar to the Starteo Loan but is for companies of four years and over in age. The loan is limited to three times the investment made by the business.
3. The start-up loan is aimed at the fully unemployed who have been receiving benefits or a job-seeker's allowance for less than three months, or those on subsistence allowance who wish to become self-employed or set up a company. The support consists of a subordinated loan not exceeding €30,000, for a period no longer than ten years, at a preferential rate of 4 percent. The applicant must contribute one quarter of the sum borrowed, which could be through a loan granted by a financial institution.
4. This loan is aimed at a private person who starts up as self-employed or who sets up a business and who has substantial financial difficulties (e.g. a person receiving a social reintegration income, social security benefits, unemployment benefits, etc). The support consists of a subordinated loan not exceeding €12,000, repayable over four years at a fixed rate of 3%. The joint loan can be combined with a start-up loan provided the conditions under which the latter is granted are met.

There are several foundations that be of benefit when considering Belgium;

Aids that are specific to Brussels:

The Brussels Enterprise Agency (BEA) www.abe-bao.be

Portal for aid in the Brussels-Capital region (FR) www.ecossubsibru.be

Regional Society for Investment in Brussels (SRIB) (FR) www.srib.be

Aids that are specific to Wallonia:

Sowalfin, financial one-stop shop for SMEs in the Walloon region (FR) www.sowalfin.be

Walloon region "Enterprises" (FR) www.wallonie.be

Aids that are specific to Flanders:

ParticipatieMaatschappij Vlaanderen (NL) www.pmv-kmo.be

Flanders Investment & Trade (FIT) www.flanderstrade.com

Certain Chambers of Commerce also finance innovative projects or put start-up entrepreneurs in touch with potential partners.

Official information and services on financing methods in Belgium www.belgium.be

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