The Proxi loan

What is the Proxi loan?

The Proxi loan uses the savings of private individuals, often referred to as the 3Fs (Family, Friends and Fools), to finance the activities of self-employed people or SMEs in Brussels.

By granting this loan, the private lender can enjoy a tax benefit in the form of an annual tax credit: this tax benefit is 4% per year for the first three years, followed by 2.5% for the remaining years. If applicable, and under certain conditions, they can also receive a one-off tax credit of 30% if, for example, the financed company goes bankrupt. 

Who can apply for a proxi loan?

The borrower must be a small or medium-sized enterprise (SME) constituted as a legal entity or managed by a self-employed person (on a principal or supplementary basis), or a not-for-profit association carrying on an economic activity. In addition, the borrower must be registered as a company with the Crossroads Bank for Enterprises and have at least one establishment unit in the Brussels-Capital Region.

The borrower can borrow up to €250,000 (all proxi loans combined).

Who can provide a proxi loan?

The lender must be a natural person residing in the Brussels-Capital Region. They may not grant the loan in the course of their commercial or professional activities and may not be a manager, director or shareholder or hold a similar office in the SME receiving the loan.
In addition, the lender's spouse or legal cohabitant may not be a shareholder or hold a similar office in the SME receiving the loan. Nor may the lender be employed by the SME or have other representatives as borrowers.

The lender may grant one or more proxi loans up to a maximum of €50,000 per year. The total amount of all loans may not exceed €200,000.

The registration of Proxi loans and the maintenance of the Register of these loans have been entrusted to the Brussels Guarantee Fund, which is managed by finance&invest.brussels.

What are the characteristics of the loan?

The duration, interest rate and tax benefit, type of loan, etc. are specified on the finance&invest.brussels site (FR).

How does it work and how to apply?

In practice, to use private savings by granting a Proxi loan to a Brussels company, the lender and borrower must both sign a loan deed. This will be drawn up using this online form. On the finance&invest.brussels site, you can also run a simulation for the proxy loan.