Financing through grants, co-financing and deposit management.

What can you expect from government funding?

The government has created numerous support measures to support the business community. You often see government funding in the form of subsidies, but sometimes the government even invests in your company through venture capital. In addition, there are options for loans, guarantees and tax benefits.

What are the benefits?

The wide range of options, including for starters, is a huge advantage of government funding. The specific financial features and the flexible form of financing also often make it more accessible than traditional bank financing. In addition, government funding can be a nice lever for bank loans.

What are the disadvantages?

It is often a lengthy process to secure government funding. Of course, there is a lot of administration involved and strict selection criteria apply.

In addition, you always need other sources of funding to supplement your financing mix. The government also monitors their funding closely, so control after funding is certainly not out of the question.

What forms of government funding are there?

There are four main categories of government funding in Belgium. These are subsidies, loans/risk capital, guarantees and tax benefits. The conditions and authorities involved may vary by region.

Government subsidies

You can apply for subsidies if you meet certain conditions. The biggest advantage is that you don't have to pay them back. But unfortunately, the subsidy system is complex and fragmented, so it can take a very long time to apply for a grant. In the subsidy database of the Flemish government you can find almost all subsidies.

A loan or venture capital as government funding

Through subordinated loans (start-up loan, co-financing (+) and business loans) and (risk) capital, the government fills part of the financing needs. This reduces the risk for other financiers such as banks. There are many types of loans and capital solutions, for both start-ups and established SMEs, including:

• PMV (Flanders)
• Trividend (Flanders)
• LRM (Limburg)
• Finance & Invest.brussels (Brussels)

Guarantee management by the government

In the case of deposit management or deposit arrangements, the government assumes (part of) the risk of other financiers. She does this through a guarantee. This type of government funding is regulated at the regional level through these bodies:

• PMV (Flanders)
• Sowalfin (Wallonia)
• Brussels Guarantee Fund (Brussels)

Tax benefits and incentives

Finally, the governments encourage private individuals to provide subordinated loans or invest capital in SMEs. The government therefore does not provide funding itself, but encourages Belgian investors to invest their savings in companies. In exchange, the investor receives tax benefits such as tax credits, tax credits and financial guarantees.

• Win-win loan (Flanders)
• Friend share (Flanders)
• Proxy loan (Brussels)
• Prêt Coup de pouce (Wallonia)
• Tax shelter for starting and growing companies

What are the challenges with government funding?

In addition to the standard investment criteria, government funds also use other criteria such as local employment, sustainability, etc. So you not only have to prepare financially, but you also need a strong file on a social level.

Why seek government funding through The Harbour?

The Harbour has an extensive network of government agencies. We have a good reputation among the authorities and know who to come to with which file. In addition, we are an officially recognized partner of PMV and other government funds.

We receive regular training from the government so that we know what is important and how we can make a difference for you. This way, we can also optimize each file in function of the most recent criteria.