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Record numbers for ‘win-win loan’ in 2021, but ‘friend sharing’ does not meet expectations yet |  the interior

Record numbers for ‘win-win loan’ in 2021, but ‘friend sharing’ does not meet expectations yet | the interior

What is a win-win loan?

With the win-win loan, the Flemish government wants to encourage individuals to make secondary loans to self-employed friends and small and medium businesses, but also to non-profit organizations such as sports clubs or social and cultural associations. Since October 2020, the process has been expanded and relaxed: individuals can borrow up to 75,000 euros and can – in consultation – set the term between 5 and 10 years. Beneficiaries can borrow up to €300,000. According to Minister Krevets, the instrument amounts to 8,665 loans for 152 million euros. In 2020, the counter amounted to 4,176 loans totaling 100 million euros.

In addition to the win-win loan, Minister Krevits launched a second tool in February 2021: “Friends Sharing”. With the participation of friends, you can invest up to 75,000 euros in an SME as a private individual by becoming a shareholder in it. In return, a Friends contributor receives a tax benefit of 2.5 percent annually for a maximum of 5 years.

Since the launch, according to Minister Krevets, 239 Friends of Friends shares have been approved, worth €656,000. Andries Gryffroy (N-VA), who questioned Minister Crevits about the win-win loan and friend sharing, thinks that number is low. He asks the minister to “raise it up a bit” in regards to the quota of friends. Minister Krevitz believes the provisional figure is “not that bad” and believes it is too early to make adjustments. However, efforts will be made to disseminate the instrument more widely.

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