The Seed Funding Loan under the INVEST EU initiative is designed for small and medium-sized enterprises (SMEs) in France that are less than 8 years old and have successfully raised a minimum of €200,000 in seed funding. This loan can cover up to 50% of the completed fundraising amount, providing key financial support to strengthen your company’s structure during critical growth phases. The loan terms are flexible, with a repayment period of up to 8 years, including a 3-year grace period on capital repayments.
Objectives
The Seed Funding Loan aims to bolster the financial foundation of SMEs as they complete fundraising rounds. This support is critical for companies looking to scale operations, invest in innovation, or enhance their market presence. By leveraging this loan, businesses can secure the necessary capital to navigate the challenges of early-stage growth effectively.
Beneficiaries
This funding is available to SMEs that meet the following criteria:
- Less than 8 years old
- Successfully completed a seed fundraising round of at least €200,000
Excluded from eligibility are:
- Enterprises in difficulty as defined by European regulations
- Companies resulting from mergers or acquisitions
- Firms that have previously distributed profits
- Companies majority-owned by linked investment funds
- Sole proprietorships and real estate investment companies
- Enterprises listed on regulated financial markets, except for multilateral trading facilities
- Companies located in overseas collectivities (COM)
- Businesses classified as ‘Non-Performing’
- Companies operating in sectors excluded by Bpifrance.
Eligible operations
The loan can be used specifically for:
- Completing a fundraising round, which must involve professional ‘informed’ investors such as venture capital firms or professional business angels. Crowdfunding platforms with appropriate regulatory status may also qualify as informed investors.
Eligibility conditions
Key eligibility conditions include:
- The fundraising round must be composed of professional investors.
- Only a 5% retention guarantee of the loan amount is deducted at disbursement. No other security is required on company assets or personal assets of the manager.
Grant amount
The loan amount ranges from €100,000 to €1,000,000, or up to €2,000,000 if an exemption is granted. The loan is capped at 50% of the total fundraising completed and the new net equity of the borrower after fundraising. The repayment term is 8 years, including 3 years of capital repayment deferral.
Frequently asked questions
Can I combine the Seed Funding Loan with other financing options?
Yes, the Seed Funding Loan can be combined with other financing options, provided they do not overlap in terms of funding the same expenses. Check with Bpifrance for specific combinations.
How long does it take to receive the loan after application?
The processing time for the Seed Funding Loan can typically range from 4 to 8 weeks after submission of a complete application. Factors such as the complexity of your project and the volume of applications being processed may influence this timeframe. For a more precise estimate tailored to your specific situation, please reach out to Bpifrance.
Is my startup eligible if it has only raised €150,000?
No, your startup must have successfully raised a minimum of €200,000 in seed funding to qualify for the Seed Funding Loan.
What should I do if my application for the Seed Funding Loan is rejected?
You can request feedback from Bpifrance on your application. This information can help you improve your submission for future funding opportunities.
Is the Seed Funding Loan still available in 2026?
Yes, the Seed Funding Loan is currently active. However, availability may depend on budget allocations, so it’s advisable to apply early.