What you need to know about the corona loan from PMV: Part III

6 March 2022

In recent months, CFOrent has helped various start-ups and scale-ups request corona loans from the investment agency, PMV. For some companies, this loan is essential to survive. That’s why we are using this series of blogs to share valuable insights into PMV and the corona loan.

(For general information about the corona loan, please visit the PMV website.)

‘Expect a longer turnaround time of about one month. Patience will only benefit a credit request.’ – Jan Van Assche, Partner at CFOrent

Good things come to those who wait

After the first checks, the dossier is assigned to your dossier manager: an investment manager. As the corona loan is particularly popular, the promised turnaround time of one month is not always able to be met. PMV assesses your request not only on the basis of figures, but also performs a thorough, in-depth investigation. Don’t panic if the request takes longer than expected. PMV is a major organisation. As a government fund, it needs to follow strict procedures, and be approved by different levels of investment committees.

Five tips for success

  1. Don’t look at the request as a desperate last attempt to save your company. Keep the tone—and your attitude—positive. Emphasise opportunities and your readiness to adjust where necessary.
  2. Build a good relationship with your dossier manager and provide help wherever possible. The more accurate the information provided, the greater the chance they will support your dossier and that it will be approved.
  3. Can your existing shareholders do anything to influence the decision? Maybe they could write a letter of intent in which they declare that they pay the balance in the financing round.
  4. Existing and future clients can also provide a letter of intent. A signed contract with a major client helps boost the confidence of the investment agency.
  5. External advisors like CFOrent help you build a strong dossier, saving you plenty of valuable time. Nonetheless, the first step is to bring management and shareholders into the story. The dossier manager will thoroughly check this.

What do you do if the request is refused?

It does not happen often, but sometimes the entire requested amount is refused. Remain calm and listen to the feedback from your contact person at PMV. Is there any suggestion of a misunderstanding? Is there too little confidence in your product, the market or the team? If you succeed in correcting these fundamental parameters, you can submit your dossier a second time and you’ll have a good chance at success.

European Investment Fund guarantees

On 30 November, PMV and the European Investment Fund (EIF) signed an agreement under which EIF will cover 195 million euro in guarantees. In other words, PMV will be able to recuperate up to 195 million euro from EIF for late subordinated loans that are not paid back. This is good news; through the guarantees from EIF, PMV can offer corona loans up to 150,000 euro at a deferred interest rate of just 3 per cent.

Source: Het Nieuwsblad

Contact CFOrent for support with your corona loan.

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