State guarantee scheme for new bank loans for a maximum duration of 6 years

Under this new regime, which was announced on 25 March 2020 as part of the economic stabilisation programme and introduced by the law of 18 April 2020, the state provides a guarantee for bank loans granted to businesses of EUR 2.5 billion. Businesses can therefore contact their bank and apply for a loan of up to 25 % of their turnover, and be backed up by a state guarantee of up to 85 % of the loan. The loans will be guaranteed at 15 % by the participating banks. The loans are intended as a subsidiary tool after having resorted, where possible, to the tools available from the Société nationale de crédit et d'investissement (SNCI), the Office du Ducroire or the European Investment Bank in particular.

These new credits are reserved for businesses that were viable before 18 March 2020 (state of emergency). The assessment of whether a business was viable or not is the sole responsibility of the banks.

Please note: this only applies to loans taken out between 18 March 2020 and 30 December 2021.

How to apply for a loan with a state guarantee

1. Finding a partner for the funding

Contact one of the participating banks (BCEE, BIL, BGL BNP Paribas, Banque de Luxembourg, Banque Raiffeisen, ING, Bank of China and Banque BCP) to apply for a loan. Your bank can assess whether you are eligible and, where applicable, assist you in the process.

The maximum amount of eligible loans can be up to 25 % of your business turnover for the year 2019 (or failing that, the last year available). For young innovative enterprises, the maximum amount of the loan is twice the company's total annual wage cost.

Guarantee premium for small and medium-sized enterprises

For small and medium-sized enterprises, the guarantee premium, borne by the borrower, shall be set at :

  • 0.25 % for a maximum maturity of one year;
  • 0.50 % for a maximum maturity of 3 years;
  • 1 % for a maximum maturity of 6 years.

Guarantee premium for large companies

For large companies, the guarantee premium, borne by the borrower, is set at:

  • 0.50 % for a maximum maturity of one year;
  • 1 % for a maximum maturity of 3 years;
  • 2 % for a maximum maturity of 6 years.

2. Obtaining the guarantee

Your bank will notify the State Treasury of the granting of the loan in order to benefit from the State guarantee.

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