Convertible Loans and the New Invest Eligibility Guidelines

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The new eligibility guidelines for the Invest funding programme are out! They apply to applications from 06.02.2023 on and make things easier with respect to convertible loans. They benefit from an acquisition subsidy of 25% of the issue price (nominal value & share premium). The loan agreement must already provide for the conversion which must take place within 24 months from the date of the approval notice. The investment must amount to at least 10.000 €. The further requirements for the acquisition subsidy remain unchanged: the loan agreement may only contain clauses at arm’s length. This applies in particular to the interest rate (10% p.a. max.), the term, the discount (30% max.) and the cap (not lower than the valuation of the last financing round). The acquisition subsidy is only paid out after conversion. Converted interest is not eligible under the acquisition subsidy. The minimum holding period of 3 years only runs from conversion.

You can find further information here.

Conclusion:

There are new eligibility guidelines for the Invest funding programme. They apply to applications from 06.02.2023 on and make things easier with respect to convertible loans.

Rebekka Weick

Rebekka Weick

Lawyer

Rebekka Weick studied law at Saarland University (centre juridique franco-allemand), obtained Licence en droit at Université Côte d'Azur in 2017 and Bachelor of Arts/Licence German-French Studies at Saarland University and Université de Lorraine in 2014. Rebekka joined MAP in 2020 as a research associate with a focus on corporate law and has been a legal trainee at the Regional Court of Constance since October 2020. She passed her 1st state exam in June 2020 and her 2nd state exam in October 2022. Since December 2022, she works as a lawyer for Müller, Altmeyer & Partner Rechtsanwälte.

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