The Sustainable Competitiveness Loan (PCP) is a financial product aimed primarily at SMEs to help finance any type of project that contributes to their competitiveness and sustainability. Larger companies can also take advantage of it for projects linked to the digital and ecological transition. According to Economy Minister Lex Delles and Finance Minister Gilles Roth, this new financial instrument will help "strengthen the country's economic fabric".

The ministers emphasised the complementary nature of the product with regard to existing aid for SMEs and the financing of digital and sustainable transitions and with regard to existing bank financing. "We need to see the PCP as a trigger for additional bank financing to support businesses in their key projects regardless of their stage of development" detailed Gilles Roth.

A forward-looking financial product

The PCP initiated by the SNCI will have to be applied for directly from the five partner banks in the project, These are Spuerkeess (BCEE), BIL (Banque Internationale à Luxembourg), BGL BNP Paribas, Banque Raiffeisen and Banque de Luxembourg. In practical terms, it enables companies to benefit from 80% co-financing, with a ceiling of €200,000 per project. The term of the SNCI PCP loan can be up to 10 years. The commercial bank will finance at least 20% of the project and will support its customer through the application process. "Applicants will not have to complete any additional applications", insists Gilles Roth.

So, on a loan of €250,000, the SNCI will guarantee €200,000. The €200,000 provided by the SNCI via the PCB has a repayment period of 5 to 8 years "with a grace period", explains Lex Delles. All of this will be at zero interest, in compliance with the European 'de minimis' regime, which exempts small amounts of state aid from notification to the European Commission. Under this scheme, companies can receive a maximum of €300,000 in aid over a sliding 3-year period.

"Our companies, and especially our SMEs, are facing growing challenges in an increasingly complex environment. This new instrument is designed to give the means, particularly to SMEs, to invest with confidence in forward-looking projects", commented Lex Delles for whom "the PCP will enable sustainable and impactful investments in digital and green transformation, while guaranteeing accessible and concrete support without adding an extra administrative step."