The 40 million euros envelope allocated to finance & invest.brussels to support businesses facing the health crisis is almost empty. A new fund will be created.
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The Brussels government has given its green light, Thursday, to the proposal of the Secretary of State for Economic Transition Barbara Trachte (Ecolo) to create a regional fund to help Brussels companies improve their solvency. This fund, which will be endowed with 40 million euros, will be managed by finance & invest.brussels. he goes take over from subordinated loans at reduced rates granted by the Brussels invest.
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The mission of the new Brussels fund will be to co-invest alongside the federal transformation fund.
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Of the € 39.5 million which had been allocated to him for this purpose, 36 million are in fact committed or in the process of being. There are 80 loans granted, and 36 in process, three quarters of which are in the hotel and catering sector and its suppliers, the initial target for these loans, extended at the end of 2020 to all Brussels companies with more than 10 people. .
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Co-investments
The new fund will be responsible for co-invest in Brussels companies alongside the federal transformation fund which must be set up by the SFPI (Federal Participation and Investment Company), and possibly also, institutional or private investors.
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The goal? Help companies that were not in major financial difficulty before the crisis and who are able to present a new viable business plan. Barbara Trachte adds a green touch, announcing that particular attention will be paid to companies “which integrate the transformation of the economy into their business model in order to have a environmental and social impact“.
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Relieve solvency
The fund will focus on interventions to relieve the solvency of companies and in particular, on quasi-equity loans. It will be accessible to Brussels companies of at least 5 people, for interventions between 100,000 and 5 million euros.
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We know that the coronavirus crisis has weakened a large number of companies, and thatafter the liquidity crisis, there is now a solvency crisis.
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“Since the start of the crisis, the Brussels Region has put in place various instruments to preserve the liquidity and solvency of companies, such as different premiums, the Proxi loan or the Oxygen loans“, recalls Barbara Trachte.
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“The mission delegated to finance & invest.brussels coming to an end, it was essential to create a new fund that could take over within the framework of the economic instruments necessary for the redeployment of the Brussels economy “, she adds. A redeployment that the Brussels Region hopes to amplify by playing, therefore, on the co-investment with the Federal government via the SFPI.
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