Dtwo years after its launch, the Proxi loan allowing the financing of a self-employed or SME activity in Brussels thanks to the savings of individuals, confirms its take-off.
finance&invest.brussels recorded more than €5.1 million in loans granted by nearly 1,600 Brussels residents for the benefit of 110 companies in the Brussels-Capital Region.
Launched in October 2020 at the initiative of the Brussels Government, the Proxi loan allows individuals to lend money to Brussels businesses while benefiting from tax advantages in the form of a tax credit of 4% for the first 3 years and a partial refund guarantee in the event of bankruptcy. It also allows corporate borrowers to take out loans from individuals at the rate currently in effect, varying between 2.6 and 5.25%. The duration is fixed at 5 or 8 years with a maximum ceiling of €250,000.
“By ensuring the operational management of the Proxi loan, finance&invest.brussels confirms its primary mission of facilitating and completing the financing chain for Brussels businesses. This regional system allows individuals, known as “Family, Friends and Fools”, to lend money subject to advantageous tax conditions and regional guarantees. This is reassuring for the candidate-lender and encouraging for the company seeking financing. The process is therefore a win-win for all the protagonists”, underlines Pierre Hermant, CEO of finance&invest.brussels
As part of this mechanism, more than €5.1 million in loans are currently recorded by finance&invest.brussels. The investments concern 110 Brussels companies supported by 1,588 lenders. The balance sheet is promising and demonstrates the real interest in the Proxi loan in support of the local economy.
The regional system is gaining notoriety in 2022. Indeed, 57 companies were supported last year while in 2021, 43 companies benefited from it. The same trend is observed for the number of lenders: 766 lenders in 2022 against 618 in 2021.
The recorded amount of Proxi loans remains in line with the same trends as in 2021 despite a slight decrease: €2.2 million in 2022 instead of €2.4 million in 2021.
The results also show a 10% increase in companies with more than 4 years of existence. This represents nearly 70% of corporate borrowers.
With regard to the leading business sectors, wholesale and retail trade represents more than 25% of the companies supported, specialized activities (legal activities, accounting, etc.) represent more than 15% and finally manufacturing industries for almost 10%.
The average bet per lender is around €5,000, knowing however that the amounts are very varied, from €20 to €50,000. ” Even a loan of a hundred euros can make a difference. It can be seen, in fact, that in certain registered files, the borrower manages to bring together a greater number of lenders around his entrepreneurial project. The strength of its network thus enables it to respond, even with small loans, to its financing needs,” explains Ellen Hansen, Head of Unit Automated Products & Guarantees at finance&invest.brussels
Finally, as of December 31, 2022, no bankruptcy has been recorded in the entire Proxi loan portfolio, despite the difficult economic context.
Barbara Trachte, Secretary of State for Economic Transition: “Two years after its launch, the many companies and citizens who have used the Proxi loan prove the importance of such a system for mobilizing the savings of the people of Brussels. These figures are encouraging! In addition, the system will soon be reinforced: in the future, an additional advantage will be granted to exemplary projects at the social or environmental level. For these, the regional guarantee in the event of bankruptcy and impossibility of reimbursement will indeed increase from 30 to 50%”.
The draft ordinance devoted to citizen savings will be presented to the Economic Affairs Committee on Wednesday 15 February.
