Co-financing principle

The SNCI does not finance 100% of a project.

With a view to risk-sharing, SNCI intervenes through a co-financing approach with commercial banks, aiming to ensure an appropriate balance between your different sources of financing. Overall, SNCI loans cover on average 50% of bank financing granted to artisans, traders, hoteliers, or restaurateurs. For the initial establishment of SMEs, a higher intervention rate may be granted to finance their fixed assets.

Financing of professional investments

The credits granted are intended for the financing of tangible or intangible assets used exclusively for professional purposes.

‘Investor = Operator’ principle – the company borrowing the funds must be the one directly using the assets (exceptions may apply for business transfer projects).

National economic impact and development

The project must demonstrate its economic viability and must contribute to the development and diversification of the Luxembourg economy.

Medium- and long-term financing

SNCI grants medium- and long-term financing of between 5 and 15 years.

Financial predictability and transparency

• Fixed rates : predictability of financial charges for the company
• No application of fees or commissions.
• Sharing of collateral: pari passu principle with partner commercial banks on the collateral proposed for the project

Financing deployment models

• Indirect interventions: nearly 95% of our financing is granted via authorized commercial banks.
• Direct interventions: in certain cases where indirect intervention is not possible, a loan may be directly granted by the SNCI.