WE Subordinated Loan

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Complementary to a bank loan, this financing supports investments, business takeovers, or operating needs

Product type: Subordinated loan
Granted through: Through your bank
Business stage: Creation, growth, transfer
Minimum amount: € 25,000
Maximum amount: € 1,000,000 per project** (up to the amount of the associated bank loan). Total outstanding amount limited to €2,000,000.

For whom?

This product is intended for:

Self-employed professionals and SMEs
Located in Wallonia*
Not in financial difficulty*
Operating in an eligible sector*

For what purpose?

This loan allows you to finance:

Real estate and equipment investments
Working capital needs
The takeover of an existing business

Duration

Same duration as the associated bank loan or leasing agreement, with a maximum of 15 years, which may be extended by up to 2 additional years of grace period.

Interest rate

IRS dfor the loan’s duration (reference rate published daily) +1.25%

Specific features

No collateral required from either the company or the entrepreneur. The bank provides a fixed guarantee equal to one quarter of the initial loan amount.

The European Investment Fund automatically and partially guarantees some of our commitments under the EGF and InvestEU programmes. In these cases, the bank’s ¼ guarantee is not required.

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**When setting up the financing plan, it is essential to coordinate closely with the local investment structure, especially for applications exceeding €500,000.

Need more information?

*Glossary

Definitions

Operating headquarters and/or investment location in Wallonia
A company is presumed to be in difficulty:
- When its equity capital is reduced to less than half of the subscribed capital and more than a quarter of the subscribed capital has been lost over the last 12 months.
- When the conditions for submitting to collective insolvency proceedings are met, particularly when the company resorts to judicial reorganisation proceedings. (PRJ).
- Certain financing solutions are more restrictive (non-uniform European regulations).
The business files in which WE may intervene must not operate in the following areas:
- Road haulage for hire or reward where the financing relates to the acquisition of goods transport vehicles
- Primary production of agricultural products listed in Annex I to the Treaty on the
- Functioning of the European Union
- Banking, finance and insurance, with the exception of multi-brand insurance brokers
- Property development
- Production and/or distribution of energy or water, with the exception of the production of energy from renewable energy sources or high-quality cogeneration
- Education and training
- Culture, with the exception of audiovisual production
- Fishing and aquaculture
- Shipbuilding