- Small enterprises no older than 6 years (from the date of the application) in no difficulties with a set of operations in Flanders.
- Enterprise must have received a subsidy from the governmental agency Flanders Innovation & Entrepreneurship (VLAIO) for an SME innovation project or an R&D industrial project.
- Subordinated loan up to a maximum of EUR 500,000.
- Term of 6 years, with no interest payments during the first 2 years.
- Capital repayments begin in the fifth year.
- Fixed interest rate determined by the company’s risk profile.
- The amount of the loan increased by the total amount of the VLAIO grant must not exceed 80% of the total project budget approved by the IWT.
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Mezzanine financing to help your business innovate and grow
Mezzanine financing is a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. It is basically debt capital that gives the lender the right to convert to an ownership or equity interest in the company if the loan is not paid back in time and in full.
- High-growth, innovation-driving companies with a sustainable competitive advantage, known as “gazelles”.
- Company must have a seat of operations in Flanders.
- Company must have a balanced management team, a strong record of cash-flow generation and must be able to submit a solid business plan that demonstrates an ambition to grow and the ability to repay debts.
- Subordinated loan between EUR 500,000 and EUR 5 million.
- Has a maximum term of 10 years, with 7 being the average.
- Fixed interested must be paid quarterly, plus variable or deferred interest.
- A share component in the form of a conversion option or warrant may be included depending on the type of company.