The Proxi Loan
Self-employed or SME
Borrow from family or friends with a guarantee from the Brussels-Capital Region
Borrowing from family or friends to create or develop your business? It’s easy with the Proxi Loan!
The Proxi Loan mobilises private savings, often referred to as “Family, Friends and Fools”, to finance the activities of a Brussels-based self-employed person or SME.
By granting this loan, the private lender may benefit from a tax advantage in the form of an annual tax credit. Where applicable, they may also benefit, under certain conditions, from a one-off tax credit if, for example, the financed business goes bankrupt.
In addition, the Brussels-Capital Region allows lenders to a company that is exemplary in social or environmental terms to benefit from a higher one-off tax credit if that company goes bankrupt.
The registration of Proxi Loans and the maintenance of the register of such loans have been entrusted to the Brussels Guarantee Fund, whose operational management is carried out by finance&invest.brussels.
Information
Loan characteristics
Duration
Interest rate and tax benefits
-
Minimum 2.25% and maximum 4.50% (current gross legal rate for the 2026 tax year). The withholding tax on movable income must be deducted by the borrower from the interest due under the Proxi Loan (see “Borrower conditions”).
- The lender benefits from an annual tax advantage as well as a one-off tax credit of 30% or 50% (see “Lender conditions”).
Purpose
The funds borrowed or made available under the Proxi Loan may not be used for dividend distribution or the acquisition of shares.
Repayment
The lender and borrower may also provide for a grace period regarding capital repayment. The duration of this grace period is freely determined by them.
Subordinated nature
borrower, lender
Eligibility conditions
Borrower
Who?
On the date the Proxi Loan is concluded and throughout its duration, the borrower must meet the following conditions:
- Must be an SME, a legal entity, or a self-employed person.
- Must be registered as a business with the Crossroads Bank for Enterprises.
- Must conclude the Proxi Loan within the framework of its commercial or professional activities.
- Must have an active business establishment unit in the Brussels-Capital Region (19 municipalities).
- Must not be primarily active in the oil, coal, tobacco, arms, gambling, public administration sectors, etc. (see FAQ).
- Must not engage in activities causing clearly harmful effects on public health, activities involving corruption or bribery, etc. (see FAQ).
- Must not use a financial or holding company established in a tax haven listed on the pan-European list of countries that have refused to engage in dialogue with the European Union or remedy shortcomings in tax governance.
- Must withhold withholding tax on the interest due under the Proxi Loan (see FAQ).
It should also be noted that the borrower may be recognised as exemplary in social and environmental terms, which constitutes an additional incentive for the lender to invest in the company, as the one-off tax credit is then increased (see “Lender” benefits).
Amount?
- May borrow up to 250,000 € (all Proxi Loans combined).
Lender
Who?
On the date the Proxi Loan is concluded, the lender must meet the following conditions:
- Must be a natural person residing in the Brussels-Capital Region (19 municipalities) or taxable there for personal income tax purposes.
- Must grant the loan outside their commercial or professional activities.
- Must not be employed by the SME.
- Must not be the spouse or legal cohabitant of the borrower if the borrower is self-employed.
- Must not, together with their spouse or legal cohabitant, directly or indirectly hold more than 10% of the borrower’s shares if the borrower is a legal entity.
- Must not, nor may their spouse or legal cohabitant, be appointed or act as a director, manager, or holder of a similar mandate within the borrowing legal entity.
Throughout the duration of the Proxi Loan, must not be the borrower of another Proxi Loan.
Amount?
- May grant one or more Proxi Loans up to a maximum of 50,000 € per year.
- May grant a total amount of 200,000 € across all loans combined.
Benefits?
- May benefit from an annual tax advantage of 4% during the first 3 years and 2.5% during the remaining years (see the tax benefit simulator).
- Under certain conditions (see FAQ), the borrower may be eligible for a one-off tax credit of 30% on the principal lost permanently in the event of, for example, bankruptcy. This tax credit rises to 50% if the borrower is a company that sets an example in social or environmental terms. To be considered exemplary, a company must comply with various conditions set out on the following website: Becoming recognised as exemplary | Brussels Economy and Employment
Legal texts
Process
Procedure to follow
However, it is important to note that the services offered by these platforms involve additional costs.
Conclusion of the Proxi Loan via the online form
After completing and submitting your Proxi Loan application via the aforementioned link, the loan agreement and the amortisation schedule can be printed. The lender will receive these documents by email.
The date of signature of the agreement and the start date of the Proxi Loan must fall within the same year.
Sending the Proxi Loan agreement and amortisation schedule to the Brussels Guarantee Fund
You must prepare the amortisation schedule and the Proxi Loan agreement in three signed copies: one copy for the lender, one for the borrower, and one for the Brussels Guarantee Fund.
This last copy must be sent within 3 months after the Proxi Loan has been contracted to the Brussels Guarantee Fund as follows:
• By registered mail to: Brussels Guarantee Fund, “Proxi Loan Department”, rue aux Laines 70, 1000 Brussels
• Or as a scanned copy in PDF format, sent to: proxi@finance.brussels
Warning:
The amortisation schedule simulation or the Proxi Loan agreement simulation are not valid proof documents of the Proxi Loan. They are not registered in the Proxi Loan register.
Registration of the Proxi Loan
Within two months of receiving the deed, the Brussels Guarantee Fund verifies whether the conditions of the Proxi Loan have been met (see the legal texts above). If so, the Fund proceeds with the registration of the deed.
Registration consists of assigning a number to the Proxi Loan and entering it in the Proxi Loan register.
The Brussels Guarantee Fund informs the lender by post within one week following the registration of the Proxi Loan.
If the Fund does not register the deed because all conditions of the Proxi Loan have not been met, it will inform the lender in writing (by email or, where applicable, by registered mail). This communication will include the reasons why registration was not carried out.
The Fund informs only the lender. If the borrower wishes to obtain information, they must arrange this with the lender.
The lender completes their tax return (IPP) to benefit from the annual tax credit
The lender must include in their tax return the total amount of all loans granted or made available as at 1 January and 31 December of the relevant taxable period.
They must distinguish between, on the one hand, amounts relating to loans concluded during the relevant taxable period and during the two preceding taxable periods, and, on the other hand, amounts relating to loans concluded before that period.
The amounts declared in the tax return must be shown after deducting any repayments already made at the reference dates.
Succes stories
They have taken out a proxi loan
Pompon: “The Proxi Loan, a Very Win-Win Solution!”
Rotor DC: “The Proxi Loan, a Simple Product That Opens the Door to Other Financing Opportunities!”
What if I don’t have relatives who can finance me?
However, it is important to note that the services provided by these platforms involve additional costs.
Help
FAQ
For any more specific request, please contact us by email at the address proxi@finance.brussels