A loan on commercial rent

On 17 December 2020, the Government of the Brussels-Capital Region adopted a decree of special powers setting up a special loan for commercial tenants under certain conditions.

This mechanism, reserved for commercial tenants, is part of a business support program set up by the Brussels Region and allows the tenant to apply for a loan from the Region of up to 4 months’ rent (including rental costs), with a cap at 35.000 euros.

The conditions for granting the loan are as follows:

– The company must not be in a state of bankruptcy, liquidation or cessation of activity. It must also have an establishment unit in the leased building, which is registered with the Crossroads Bank of Enterprises at the time of the loan application.
– The lease had to already be in place prior to 19 March 2020 and must still be in place at the time of the loan application.
– The tenant must not have any rent arrears prior to March 18, 2020 at the time of the loan application.
– The landlord must be willing to make a concession: He or she must agree to forgive at least one month’s rent. However, if the loan exceeds one month’s rent, the landlord must agree to waive at least two months’ rent.

The tenant shall repay the loan and interest in 18 monthly instalments, the first of which is due 6 months after the loan is granted. The last instalments includes the payment of the interests.

All loan applications must be submitted by 30 June 2021. Loans will then be disbursed no later than 31 December 2021.

For more information on this subject, please feel free to contact Me Frédéric PAQUE (frederic.paque@cairnlegal.be).

Best regards,
The Cairn Legal team.