Financing Charter

The financing activities of finance.brussels / SRIB Group, the public financing arm of the Brussels economy, are diverse. Their central common purpose is to finance or support the creation of companies to be established or already operating in the Brussels-Capital Region, through equity investments or various forms of credit.

These activities do not constitute subsidy schemes. They aim to develop the socio-economic fabric of Brussels and support employment.

Overall, the group can meet a wide range of financing needs of companies active in Brussels, regardless of their stage of development. This Charter therefore describes:

• the institutional and legal framework of finance.brussels’ activities
• its overall philosophy of support for entrepreneurs
• its financial products and how they are distributed across its various entities

1. Institutional and legal framework

SRIB, created under the law of 2 April 1962, is a public-interest limited company governed by the Companies Code. Its subsidiaries are also governed by the Companies Code. Together, SRIB and its subsidiaries form what is commonly referred to as the finance.brussels / SRIB Group.

Since 1992, the shareholding structure has been predominantly held by the Brussels-Capital Region, with the remainder owned by major financial institutions in Belgium (Belfius, BNP Paribas Fortis, Ethias, ING and KBC, which currently hold 27% of the capital).

Except in cases where finance.brussels performs specific missions on behalf of the Brussels-Capital Region (not covered by this Charter), it should be noted that in carrying out its statutory activities, the group does not act as a public service entity. However, it aligns its actions with regional economic policy orientations, while decisions regarding investments and credit remain exclusively within the competence of its statutory bodies and management.

The following are not covered by this Charter:

• the Brussels Guarantee Fund (managed by BRUPART)
• BRINFIN, which manages delegated missions related to municipal refinancing and certain regional shareholdings (STIB, Port of Brussels, SLRB)
• SFAR subsidiaries carrying out specific housing-related financing missions under the regional housing plan

Group activities are considered commercial operations and are carried out either as market investors/creditors or in compliance with EU State aid rules.

This document also reflects the willingness of finance.brussels to provide SMEs with transparent information in line with Belgian legislation on SME financing and the associated code of conduct.

However, the group retains full contractual freedom in its financing decisions. This Charter should therefore be considered a reference guide with no binding legal force.

Unless otherwise specified, the term “company” includes both self-employed individuals and corporate entities.

This Charter is regularly reviewed in line with the needs of the Brussels economy and strategic investment priorities.

2. General investment philosophy: supporting entrepreneurs in Brussels

Several general principles guide the actions of finance.brussels / SRIB Group and its subsidiaries, which must simultaneously pursue the development of the regional economy—promoting quality employment—and financial profitability, a delicate balancing exercise.

First and foremost, the aim is to build partnerships with companies based on listening and support. As a result, the final form of finance.brussels / SRIB Group’s intervention will depend on the needs expressed by the company, its specific economic and financial situation, including its growth and development prospects, as well as the market context in which it operates. These partnerships will also take into account the interests of finance.brussels / SRIB Group and its corporate purpose.

The procedures for registering and processing financing applications are detailed in the attached document.

During the project analysis phase, the company in which finance.brussels / SRIB Group is considering investing will be asked to prepare a complete application file in which the following elements must be detailed in each case:

• A presentation of the company, its shareholders and its management team.
• A financial plan covering at least three years, including specific comments on the underlying assumptions and how the relevant economic criteria are met.
• The way in which the company takes broader societal considerations into account.
• Its potential to create quality jobs.
• Its corporate governance structure, including an explanation of any specific features that may justify deviating from certain principles or adapting their application.

Certain eligibility criteria must be met for the application to be considered admissible.

The most essential requirement, in order to fulfil the legal mission of finance.brussels / SRIB Group and the statutory missions of its subsidiaries, is the contribution of the applicant company to the development of the Brussels economy—either because its registered office, main establishment or a significant operational site is located within the region, or, in some cases, because it may involve maintaining or relocating activities to the region.

It goes without saying that the absence of information, or the clearly incomplete nature of the information provided despite requests for clarification by the analysis team, will lead to the rejection of the application. This also applies at any later stage of the assessment of an application that may initially have been considered admissible.

With regard to the profitability of the financing provided, the acceptance criteria are based, among other things, on:

• The suitability of the existing team in relation to the business project.
• The quality of the business plan, the relevance of the business model in relation to the sector and market, and the clarity of the strategy, etc.
• The development prospects presented in the financial plan (and the reasonable return expectations in the case of equity participation, or repayment capacity in the case of a loan).
• The quality of governance and the application of sound management practices at individual, financial and commercial levels, etc.

Regarding the contribution to the development of the Brussels economy, and taking into account the financing capacities of finance.brussels / SRIB Group and its subsidiaries, particular attention may be given to applications that also, for example:

• Contribute to the objectives set out in the 2025 Strategy and the Brussels Small Business Act (such as circular economy, the growth of the audiovisual sector, innovation, etc.).
• Specify the type and number of jobs that are maintained, created, or reasonably expected at a later stage.
• Involve investment in a neighbourhood facing various challenges or in an area identified, among others, by the Regional Sustainable Development Plan, where a rapid and coordinated concentration of public and private resources is recommended to create a leverage effect.
• Align with broader societal and ethical objectives (such as compliance with codes of conduct, promotion of a healthy environment, rational use of energy, etc.).
• Improve Brussels’ export potential or international image, among others.

The success of the financed company and the monitoring of investments carried out by finance.brussels / SRIB Group may, depending on the case, require:

• Acceptance of more extensive personalised support.
• The presence of an observer or even one or more directors within the financed company.
• The provision of guarantees (real, personal or financial), depending on the risk profile of the transaction.

A tailored approach is therefore favoured, in the best mutual interests of the applicant company and finance.brussels / SRIB Group, which is generally required to assume a higher level of risk than traditional financiers.

The following additional clarifications also apply:

• Interest rates on loans depend on the level of risk involved. They may sometimes be significantly higher than certain market rates, reflecting the generally riskier nature of investments made by a group committed to supporting companies, regardless of their difficulty in accessing financial markets. In addition to a risk premium, these rates also reflect the fact that, in principle, no application fees are charged.
• In the event of temporary or more structural financial difficulties, dialogue will always be prioritised. However, this cannot be interpreted as a waiver of the Group’s legitimate rights as a creditor.
• SRIB does not aim to remain a long-term shareholder in the companies it supports. There is no fixed duration for shareholding in a company (although in practice the average duration is between 3 and 9 years). The objective is to ensure that the exit from the capital does not harm either the development of the supported company or the regional economy, while also allowing SRIB to achieve an appropriate return.

3. Overview of the support mechanisms for businesses

finance.brussels / SRIB Group offers various financial products to Brussels-based SMEs, depending on their stage of development, the nature of their project and their sector of activity (please note that the activities of the Brussels Guarantee Fund, managed by the BRUPART subsidiary, are not covered by this Charter).

These financial products can be grouped into three main categories:

A. Venture capital activities

finance.brussels / SRIB Group and its subsidiary Brustart (specifically dedicated to financing innovative young SMEs) support the creation, development, and internationalisation of companies established in the Brussels-Capital Region. (finance.brussels / SRIB Group has itself taken over the activities of its former subsidiary Exportbru, which supported Brussels-based exporting companies.)

Depending on the specific characteristics of each project, interventions may take various forms (equity, loans, convertible loans) and are generally carried out alongside private investors.

The various venture capital instruments are structured as follows:

Decisions are taken in accordance with the general principles set out in the second part of the Charter, and decision timelines are typically 1 to 3 months for loans and at least 3 months for equity investments.

It should also be noted that the venture capital division also supports specific initiatives:

• A significant portion of Brustart’s resources may be preferentially allocated to supporting the pre-commercialisation phase of products and services resulting from scientific research.
• Brustart also operates under the “screen.brussels” umbrella, which specifically aims to support the development of companies in the broader audiovisual industry.

B. Bank co-financing activities

Two bank co-financing products are offered within the finance.brussels / SRIB Group:

• Brufin, for co-financing below 200,000€ (currently managed by the Brupart subsidiary)
• Brucofin, for co-financing above 200,000€

Loans granted through Brucofin/Brufin are structured as co-financing arrangements with shared guarantees alongside banks. This approach provides SMEs with an immediate leverage effect through public intervention. Co-financing requests are submitted by banking institutions requesting support (or directly by the project promoter in the case of Brufin loans).

Guarantees (business assets pledges, mortgages, personal guarantees, etc.) are shared on a pari passu basis between Brucofin/Brufin and the bank, in proportion to their respective financing shares.

This co-financing activity is particularly suited to investment financing needs of SMEs or business transfers.

The various bank co-financing instruments are structured as follows:

Decisions are taken in accordance with the general principles set out in the second part of the Charter, and decision timelines are typically 15 days to 3 weeks.

C. Microfinance and social economy division

finance.brussels / SRIB Group also provides financing to self-employed individuals and start-ups in Brussels. These loans have a maximum amount of 95,000€.

The subsidiary Brusoc specifically supports business creation in more disadvantaged neighbourhoods in Brussels and is also active in supporting the social economy. It benefits from European ERDF funding to support its activities and targets small businesses that have been refused bank financing.

Social entrepreneurship and work-integration social economy initiatives are also supported by Brusoc, which can grant subordinated loans of up to 100,000€.

The activities of the Brupart subsidiary (Boost-me) cover the entire Brussels-Capital Region.

The various microfinance instruments are structured as follows:

These products also have the particularity that applications may be submitted through accredited support organisations (or directly by project promoters) and, in this context, benefit from free support provided to the applicant throughout the entire duration of the loan. Decision timelines are generally around one month.

In addition, the financing provided by Brusoc is also intended to support social economy and work-integration initiatives in the Region, namely Work Integration Enterprises (WIEs) and Local Employment Development Initiatives (LEDIs).

Appendix – Registration and processing of financing applications

Without prejudice to the distinct legal responsibilities of each company within the finance.brussels / SRIB Group, applications are registered in a flexible manner by contacting the general call centre (02 548 22 11) or by email (info@finance.brussels). The Group will, where appropriate and after requesting additional information, direct the application to the most suitable entity (as explained in point 3 below). Applications may also be submitted via accredited partners or through 1819, the regional business information desk.

The application process generally follows these steps:

• Initial phone contact with the project promoters
• Meeting between the project promoters and a financial analyst
• Assessment of admissibility and potential for intervention by a financial analyst
• Presentation of the initial file to a multidisciplinary team, which usually meets every two weeks (except during school holiday periods, without prejudice to urgent cases), bringing together the management, analysts, lawyers, and financial and accounting managers of the Group
• Review and decision by the Board of Directors or Executive Committee of SRIB (depending on delegation of authority; Board for investments above €1 million, Executive Committee for others) or by the Board of the relevant subsidiary