Flanders offers support for win-win loans by providing an annual tax discount of 2.5% (on the amount of the loan) to those who grant up to EUR 75,000 to friends, family members or acquaintances who own a company in Flanders for a period of 5 to 10 years.
Borrowers should know that win-win loans:
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make it easier for you to find start-up capital;
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are subordinated, must amount to a maximum of EUR 300,000 and must run for 5 to 10 years (with monthly, quarterly, biannual or annual repayments);
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are available to independent SMEs with fewer than 250 employees and annual turnovers below EUR 50 million, or a balance sheet total below EUR 43 million.
(Note: ‘independent’ means that, if there is a relationship of participation with other enterprises of 25% or more of the capital of voting rights, the SME’s consolidated figures must satisfy the criteria mentioned above. A larger shareholdership by risk capital companies, universities or non-profit research centers is also permitted.)
Lenders should know that they:
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must be a natural person living in Flanders who arranges the WIN-WIN loan outside the framework of his or her professional activities.
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may not be an employee of the borrower.
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may not be the spouse or the legally cohabiting partner of the borrower if the latter is self-employed.
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may not be a borrower of another WIN-WIN loan for the entire duration of the WIN-WIN loan.
(Good to know: if the borrower is a company, the lender may not be a manager, director or shareholder of that company, or a spouse or legally cohabitating partner of one of them.)