Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure LU-2011-36/2573 – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Open ended, started on 02 September 2011|
|Context||COVID-19, Restructuring Support Instruments|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Access to finance
|Author||Patrick Thill (LISER) and Eurofound|
|Measure added||23 June 2022 (updated 14 November 2022)|
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).
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.
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 (https://www.snci.lu/files/89073.pdf).
In financial year 2020, SNCI did not make any originate-transfer loans.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Eurofound (2022), Transfer loan, measure LU-2011-36/2573 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2011-36_2573.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.