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.
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.
Service-public With continued ARE, the allowance keeps being paid while you launch.Service-public Continued ARE secures your personal income; Arce brings cash into the project. See setting up a SASU while receiving 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.Service-public
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.bpifrance.fr 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,bpifrance.fr and France Active's can go up to 80%. Compare at least two banks. The start-up pages of the main banks are in the dataset.
If the bank says no, Adie lends €300 to €15,000, over 48 months at most.adie.org
3. Aid from your region
Regions run their own start-up aid schemes, including the former Nacre aid.Service-public These take the form of loans, grants or support paid for by the region. The dataset 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).bpifrance.fr 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.bpifrance.fr
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.franceangels.org 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.protectepargne.amf-france.org
- 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.Service-public To bring in investors you need a company, in practice a SAS: see which company to choose to raise funds.
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 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.
Frequently asked questions
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.
Written by Razvan Toma, founder of LegalRapide. How we check our figures · LinkedIn