# How do you finance starting a business in 2027?

Updated : 2026-10-24 · Source : https://legalrapide.fr/en/entreprendre/financer-creation-entreprise/

A new business is rarely funded from a single source. The order that most often works: **your own contribution**, then **the aid tied to your situation** (Arce or continued ARE, Acre), a **0% honour loan** that reassures the bank, then a **bank loan**, often guaranteed. **Investors** (business angels, funds) come later, and only for a company aiming for strong growth. The 102 verified schemes are in [our dataset](/en/donnees/financements-creation-entreprise/).

## The order to follow
| Step | What you get | Published amount |
|---|---|---|
| 1. Personal contribution | Your starting equity, which matters to the bank | Your savings |
| 2. Arce or continued ARE | If you receive unemployment benefit: a lump sum or an allowance that continues | Arce: 60% of remaining entitlement, minus 3%, in 2 instalments |
| 3. Acre | Lower social contributions at the start | Partial exemption for 12 months (micro-entrepreneur: 75% of the normal rate) |
| 4. Honour loan | A 0% personal loan, with no collateral | €1,000 to €80,000 (Bpifrance) |
| 5. Bank loan | The bulk of the funding, often with a guarantee | Depends on the application |
| 6. Microcredit | If the bank says no | €300 to €15,000 (Adie) |
| 7. Innovation grants | For an innovative project | Up to €30,000 (Bourse French Tech) |
| 8. Investors | Equity in exchange for a share of the capital | Subject to negotiation |

## 1. Your contribution and the aid tied to your situation
If you are a jobseeker receiving benefits, you choose between two options. **Arce** pays 60% of your remaining entitlement, minus a 3% contribution to supplementary pensions, in two instalments. With **continued ARE**, the allowance keeps being paid while you launch. Continued ARE secures your personal income; Arce brings cash into the project. See [setting up a SASU while receiving ARE](/en/reponses/sasu-are/).

**Acre** lightens social contributions at the start, subject to conditions: for a company director (SASU, EURL…), a partial exemption from personal contributions for 12 months; for a micro-entrepreneur, contributions at 75% of the normal rate until the end of the third calendar quarter after starting business.

## 2. The honour loan, then the bank
An honour loan is a **personal loan to the founder**, at 0% and with no collateral, granted by a network (Initiative France, Réseau Entreprendre, France Active) after you pitch to a committee. Bpifrance's ranges from €1,000 to €80,000, over 1 to 7 years. You then contribute it to the company: it increases equity and makes the bank more receptive. Initiative France says that €1 of honour loan unlocks €9.5 of bank lending on average.

The bank funds the rest. It often asks for a **guarantee**: Bpifrance's Garantie Création covers 60% of the loan for a company less than 3 years old, and France Active's can go up to 80%. Compare at least two banks. The [start-up pages of the main banks](/en/donnees/financements-creation-entreprise/) are in the dataset.

If the bank says no, **Adie** lends €300 to €15,000, over 48 months at most.

## 3. Aid from your region
Regions run their own start-up aid schemes, including the former Nacre aid. These take the form of loans, grants or support paid for by the region. The [dataset](/en/donnees/financements-creation-entreprise/) gives the link for each region of mainland France.

## 4. Grants for innovative projects
The **Bourse French Tech** funds up to €30,000 of an innovative project's expenses, capped at 50% of eligible expenses (up to 70% depending on the company). No expense incurred before the application counts: apply before you spend. The Emergence version goes up to €90,000 for a deeptech company less than a year old. Bpifrance's **seed loan** (€50,000 to €100,000) then strengthens the cash position of a young innovative SME ahead of a funding round.

## 5. Investors, only if the project warrants it
An investor takes a share of the capital and expects to sell it at a profit. That suits a startup aiming for strong growth, not a shop or a consulting business.
- **Business angels**: private individuals grouped into networks, often regional, who invest in early rounds. The dataset lists 24 networks.
- **Crowdfunding**: reward-based donations (pre-sales, with no equity stake) or investment through an authorised platform. Check that it appears on the [AMF white list](https://protectepargne.amf-france.org/acteurs-listes-blanches/psfp).
- **Seed funds**: for a startup that already has its first customers or solid technology.

Your private investors may qualify for the **IR-PME tax reduction**: 18% of the amounts paid into the capital of an SME less than 10 years old, with shares held for 5 years. To bring in investors you need a company, in practice a SAS: see [which company to choose to raise funds](/en/entreprendre/societe-pour-lever-des-fonds/).

## The financing plan
The bank and honour loan networks ask for a financing plan: needs (start-up costs, working capital) on one side, resources on the other. Our [launch budget tool](/en/entreprendre/budget-lancement/) gives you the basis. Setting up the company costs €223.56 including VAT in legal fees for a SASU at current rates, with the Essentiel plan.

## FAQ
**Can you combine Arce and continued ARE?**
No. A jobseeker receiving benefits chooses one or the other: Arce pays a lump sum in two instalments, continued ARE keeps the allowance going while you trade.

**Is the honour loan paid to the company?**
No. It is a personal loan to the founder, at 0% and with no collateral. The founder then contributes it to the company, which strengthens equity before applying for a bank loan.

**What can you do if the bank turns down the loan?**
Ask for a guarantee (Bpifrance, France Active, Siagi), apply for an honour loan to boost your contribution, or turn to Adie's microcredit, up to €15,000.

**Do you need a company to raise funds?**
Yes. A sole proprietorship or a micro-entreprise has no capital to open up. The SAS is the form best suited to investors.


## Sources
- [Service-public: Arce](https://entreprendre.service-public.gouv.fr/vosdroits/F15252)
- [Service-public: starting a business and keeping your unemployment benefits](https://entreprendre.service-public.gouv.fr/vosdroits/F36613)
- [Service-public: Acre](https://entreprendre.service-public.gouv.fr/vosdroits/F11677)
- [Bpifrance: Création-Reprise honour loan](https://www.bpifrance.fr/catalogue-offres/pret-dhonneur-creation-reprise)
- [Bpifrance: Garantie Création Standard](https://www.bpifrance.fr/catalogue-offres/garantie-creation-standard)
- [Adie: microcredit to start your business](https://www.adie.org/pour-creer-ou-developper-mon-entreprise/)
- [Service-public: regional aid for starting or taking over a business](https://entreprendre.service-public.gouv.fr/vosdroits/F20016)
- [Bpifrance: Bourse French Tech](https://www.bpifrance.fr/catalogue-offres/bourse-french-tech)
- [Bpifrance: Invest EU seed loan](https://www.bpifrance.fr/catalogue-offres/pret-damorcage-invest-eu-0)
- [France Angels: business angel networks](https://www.franceangels.org/reseaux-de-business-angels/)
- [AMF: white list of crowdfunding platforms](https://protectepargne.amf-france.org/acteurs-listes-blanches/psfp)
- [Service-public: IR-PME tax reduction](https://entreprendre.service-public.gouv.fr/vosdroits/F37091)