Business Financing in Luxembourg: Grants and Subsidies

Public and semi-public financing

• SNCI (National Credit and Investment Society): medium and long-term loans at subsidised rates for investment, up to €250,000 for SMEs
• Mutualité de Cautionnement: bank loan guarantees for SMEs lacking sufficient collateral (guarantee up to 50% of the loan)
• Luxinnovation, RDI grants: subsidies for R&D and innovation (coverage up to 50% of eligible expenses for SMEs)
• Fit 4 Start: acceleration programme with €50,000 seed financing and support
• European funds (ERDF, ESF, Horizon Europe): co-financing for innovative and cross-border projects

Private financing

Luxembourg has a growing venture capital ecosystem with players such as Expon Capital, Mangrove Capital Partners and the Luxembourg Future Fund (LFF). Business angels are grouped together within the Luxembourg Business Angel Network (LBAN). Commercial banks (BGL BNP Paribas, ING, Spuerkeess, Raiffeisen) offer investment and cash flow loans for established SMEs, with competitive rates and terms of 5 to 15 years for investment.

How to maximise your chances

To optimise your financing file, prepare a detailed business plan with 3 to 5 year financial projections, demonstrate significant personal contribution (20% minimum for bank loans), request the Mutualité des PME guarantee to reassure the bank, and combine several sources (SNCI + bank + Luxinnovation grants). Timelines vary: 2-4 weeks for a classic bank loan, 4-8 weeks for an SNCI loan, 3-6 months for Luxinnovation grants.