Factsheet for measure
LU-2011-36/2573
–
Updated
– measures in Luxembourg
Transfer loan
Prêt de Création et Reprise
Background information
The loan is intended for recently incorporated or bought out SMEs and it is provided by the National credit and investment institution in Luxembourg (Société Nationale de Crédit et d'investissement - SNCI).
The activities are subject to a ministerial authorization within the meaning of the law of 2 September 2011 (law of establishment).
Content of measure
The creation-transmission loans are intended for the co-financing of tangible and intangible expenses necessary for the realization of the business plan presented by SMEs (newly created or taken over). In particular, land, buildings or parts of buildings for exclusively professional use, professional tools, manufacturing, production or sales licenses, software, start-up costs, clientele, working capital requirements, inventories, etc., are eligible, provided that the activity related to the project has not yet started or that the takeover has not yet taken place at the date of the application.
Beneficiaries must possess a valid business permit which is issued by the Ministry of the Economy. Beneficiaries must also submit a business plan and a financing plan which must include evidence of equity capital of at least 15% of the eligible amount. Excluded from the benefit of the creation loan are the creators of already established companies. However, already established promoters can benefit from a transfer loan.
The amount of the start-up and transfer loan may not be less than €5,000 nor more than €250,000, but may not exceed 40% of the eligible base. Investments financed by a start-up or transfer loan are no longer eligible for an SNCI investment loan. Loans are repaid in a constant quarterly amortization. An initial grace period of 6-12 months may be allowed. Prepayments can be made without charge or penalty.
Updates
The following updates to this measure have been made after it came into effect.
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01 January 2024
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In 2023, the National credit and investment institution in Luxembourg (Société Nationale de Crédit et d'investissement - SNCI) granted loans, all instruments combined, for a total amount of over 74.1 million euros, compared with 63.9 million euros in 2022, an increase of 16%.
These funds were allocated to businesses as follows: 19.5 million in the form of equipment loans, of which 12.6 million to craft businesses and 6.9 million to SMEs in HORSECA, trade and industry. A further 53.4 million was granted in the form of development loans through the “proDevelop” and “proInnovate” programs. Among the projects selected, 14 involved the production of renewable energy, for a total of 34 million euros under the “proTransfer” program.
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12 January 2023
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During the 2022 financial year, six loan applications were processed for start-up or transfer projects. Of these applications, three resulted in a positive decision and were supported through creation-transmission loans for a total of €0.3 million, which corresponds to a decrease of 66.5% compared with the 2021 financial year, during which a total of almost €1 million was granted.
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Use of measure
In 2019, the SNCI (Société nationale de Crédit et d'Investissement) has mobilised a total budget of €24.1 million, compared to €60.01 million in 2018.
In financial year 2020, SNCI did not make any originate-transfer loans.
Target groups
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Workers
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Businesses
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Citizens
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Does not apply to workers
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Applies to all businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
Company / Companies
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Other
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Unknown
Involvement
Unknown.
Views and reactions
Unknown.
Sources
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02 December 2011: Société nationale de Crédit et d'Investissement - Startup Loan
(www.snci.lu)
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11 March 2020: SNCI Report 2019
(www.snci.lu)
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01 April 2021: 2020 Report and Review
(www.snci.lu)
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12 January 2023: SNCI - report 2022
(www.snci.lu)
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01 January 2024: Activity report 2023
