The start-up/takeover loan ("prêt de création-reprise") granted by Société Nationale de Crédit et d’Investissement (SNCI) is destined to encourage new entrepreneurs to start up or to take over Small and Medium-Sized Enterprises (SMEs).

Beneficiaries

The loan is intended for newly created or bought out SMEs, regardless of their legal form, and which:

• have a valid business permit issued by the Ministry of Small and Medium-Sized Businesses
• can present a business plan and a financing plan evidencing a funding from the beneficiary of at least 15% of eligible costs

Already established business founders may not benefit from the start-up loan.

Eligible costs

The following costs are eligible, provided that the activity to which the project relates is not up and running on the application date:

• costs required to implement the business and financing plans
• land, buildings or parts of buildings used for professional activities
• business assets ("fonds de commerce"), working capital and stocks
• machinery, plant and professional equipment
• intangible assets, such as manufacturing and production licences, sales licences and software
• start-up costs, such as advertising and various study costs

Types of loan

A start-up/takeover loan takes the form of a medium or long-term loan. The level of support ranges between €5,000 and €250,000 per project, without exceeding 40% of the eligible costs. The personal joint and several guarantee of the promoter(s) is required.   

The interest rate is fixed throughout the duration of the loan. This net interest rate is in line with the market rate for loans without guarantees; no additional fees or commissions are due.

The duration of the start-up/takeover loan is decided on a case-by-case basis, depending on the nature of the expenses and the enterprise’s ability to repay the loan.

The loan is disbursed in full in a single instalment once the capital outlay has been paid by the project promoter and appropriate evidence has been furnished that the financing plan is completed.

Start-up/takeover loans are repayable in quarterly instalments. The first quarterly repayment is due at the latest 5 years after the loan contract is signed. Early repayments may be made without the beneficiary incurring any penalties or fees.

Submitting an application

The application must be sent by the applicant to SNCI with the required documentation enclosed.