Extension of the guarantee scheme in the Flemish Region

The objective of this scheme was to provide businesses with better access to funding opportunities for investments in the Flemish region.

The guarantee can be granted up to a maximum of 80% of the concerned financing. The increased crisis guarantee on the other hand can be granted up to a maximum of 90%, on condition that the financing amount does not exceed the company’s total annual gross salary mass of 2008 (3). Depending on whether the guarantee is an ordinary or an increased crisis guarantee, a different premium must be paid to Gigarant.

In principle, this scheme expired on 31 December 2010.

With the Act (Decreet) of 23 December 2010 (4), the Flemish region decided to extend the aforementioned guarantee scheme (5). As a result, businesses with an operating site in the region can continue to apply for a 2011 guarantee under this scheme.

The terms and conditions were slightly modified; specifically the following:

    * Transport is no longer listed as an excluded sector;
    * Regarding the crisis guarantee, the undertaking cannot be an “enterprise in difficulty” on the date of the guarantee’s grant. For an increased crisis guarantee, as was previously mandated, the enterprise cannot have been in difficulty on 1 July 2008.

The Decree of the Flemish Region Government of 4 February 2011 (6) further stipulates that:

    * the guarantee’s maximum duration will be increased from five to eight years; and
    * the request to obtain a guarantee from Gigarant can also be submitted by the company itself, whereas previously, only the credit institution was allowed to do so.

(1) Flemish Region Act (Decreet) of 6 February 2004 concerning a guarantee regulation for small, medium and large businesses, M.B./B.S. 20 February 2004 as amended the Decree of 20 February 2009, M.B./B.S. 6 April 2009.
(2) As determined in chapter 2 of the Flemish Region Act of 6 February 2004 and the Decree of the Flemish Region government of 15 April 2009 (M.B./B.S. 28 May 2009).
(3) For Belgian companies established after 1 January 2008, the maximum amount of the financing cannot exceed the estimated total annual gross salary mass of the first two years of operation.
(4) Flemish Region Act of 23 December 2010 concerning provisions in relation to the 2011budget, M.B./B.S. 31 December 2010.
(5) With respect to the increased crisis guarantee, laid down in article 22/3 of the Flemish Region Act of 6 February 2004, nothing changes in this regard. The extension remains, as was already the case previously, subject to the extension of the Temporary Community Framework (see in particular the Communication from the Commission — Temporary Community framework for State aid measures to support access to finance in the current financial and economic crisis, OJ C83/1, 7 April 2009).
(6) Decree of the Flemish Region Government of 4 February 2011 amending various provisions of the Decree of the Flemish Region Government of 15 April 2009 on the implementation of chapter III/1 of the Flemish Region Act of 6 February 2004 concerning a guarantee regulation for small, medium and large businesses, M.B./B.S. 22 February 2011.