FEDEM reports on loans and grants to businesses

business-loan

The latest edition of Monaco Business News, published by FEDEM, the Monaco Federation of Employers, has as its main theme the topic of government aid to businesses.

As an example, a loan for new companies is reserved for Monegasques and spouses of Monegasques, provided that the activity concerned constitutes their only professional activity.

This form of help, established by Article 1 of Ministerial Decree No. 2004-261, is approved or not by a Commission chaired by the Minister of Finance and Economy. Funds can be used for rent and towards contributions to the Sickness Insurance Fund for Independent Workers (CAMTI) and the Self-Employed Pension Fund for Independent Workers (CARTI).

The beneficiary may also obtain an installation aid loan of up to €100,000 (and 80 percent of the value of the investment) for a maximum of ten years at a non-revisable rate equal to the 3-month EURIBOR rate at the date of the written request for the loan plus 0.75 points. A one-year grace period may also be granted. Objective of the loan: to assist in the fitting out and layout of the premises, the acquisition of the necessary furniture and equipment, the building up of the stock, and also the purchase of a right to a lease.

This loan can be prepaid without penalty at any time, with three months’ notice. However, it will have to be repaid immediately if the sums allocated are partially or otherwise used for other purposes if the beneficiary is in arrears for three instalments, if the business ceases or is sold.

Other grants and loans are available to Monaco-registered companies without the requirement of Monegasque citizenship, including grants towards projects that involve the use of solar energy and other renewable energy sources. Despite its title, Monaco Business News is available only in French.

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