New Zero-Interest Loan from SNCI: A Strategic Boost for Luxembourg’s SMEs

The Société Nationale de Crédit et d’Investissement (SNCI) has introduced a new financial instrument designed for Luxembourg-based enterprises: the “Competitiveness / Sustainability” loan, offering zero-interest financing.

This initiative aims to support productive, sustainable, and innovative investments in response to an economic environment characterized by rising costs and the challenges of digital and ecological transition.

A Tool to Strengthen Business Competitiveness and Sustainability

The Competitiveness / Sustainability loan is designed to help companies modernize their equipment, accelerate their digital and energy transformation, and consolidate their long-term activities. It is primarily aimed at small and medium-sized enterprises (SMEs) established in Luxembourg, regardless of their sector of activity.

In practical terms, this financing enables businesses to undertake strategic investments without incurring interest charges, thereby reducing pressure on cash flow and facilitating long-term planning.

Key Features of the Loan

This scheme complements traditional bank financing and is granted in collaboration with SNCI’s partner banks, which participate in the co-financing of projects.

The main terms are as follows:

• Interest rate: 0%
   
• Maximum amount: up to €500,000, depending on the size and nature of the project
   
• Maximum duration: 10 years
   
• Eligible beneficiaries: Luxembourg-based SMEs across all sectors
   
• Purpose: productive investments, digitalization, innovation, sustainability, or business transfer
   

The loan falls under the European “de minimis” regime, which governs public aid. It can be combined with other SNCI instruments or state aid schemes, subject to compliance with the applicable limits

Eligibility Criteria

To qualify for the loan, companies must present a concrete investment project that contributes to their competitiveness or sustainability. Eligible expenditures may include the purchase of equipment, the upgrading of facilities, digital or energy transition initiatives, or the acquisition of activities as part of a business transfer.

Access to the scheme also requires the participation of an approved intermediary bank — such as BCEE, BGL BNP Paribas, BIL, Banque Raiffeisen, or Banque de Luxembourg — which will provide part of the financing and serve as the liaison with SNCI.

Application Procedure

The application process is carried out through the partner bank. The company must follow five main steps:

1. Identify its investment project and determine the total project cost.
    
2. Contact its bank to assess the feasibility of the financing and the potential for co-financing with SNCI.
    
3. Prepare the application file, including the financing plan, financial projections, and company information.
    
4. The partner bank submits the application to SNCI for joint review.
    
5. Upon approval, the loan is formalized as part of the overall project financing.
    

This streamlined approach simplifies administrative procedures, as the Competitiveness / Sustainability loan is fully integrated into the standard bank financing process

Targeted Support for Competitiveness and Transition

With this new program, the SNCI aims to encourage Luxembourg companies to invest despite economic uncertainties. The zero-interest loan is an accessible investment lever that supports modernization, ecological transition, and the resilience of the national economic fabric.
For personalized assistance with preparing your application or for more information about the SNCI loan, please don’t hesitate to contact us.