Regulating lending to SMEs

The law regulating lending to small and medium sized enterprises (SMEs) partially entered into force on 10 January 2014 and is expected to apply to its full extent in March 2014.

The law applies when a lender enters into a credit agreement with an SME as part of the lender’s (usual) commercial or professional activities in Belgium.

Accordingly, the law has a broad and extra-territorial reach. Although it predominantly deals with general financing to SMEs, it may (unwillingly) impact other transactions such as structured financings involving special purpose vehicles (SPVs).  

Read more here with respect to:

  • Conduct of business rules
  • Early repayment – break costs
  • Code of conduct
  • Prohibition of “abusive clauses”
  • Supervision by the FSMA

If you have any questions, please contact David Ballegeer (+32 2 501 95 93), Charles-Antoine Leunen (+32 2 501 91 20), Etienne Dessy (+32 2 501 90 69), Els Janssens (+32 2 501 91 48) or your usual Linklaters contact.