How to Finance Your R&D with Bpifrance’s R&D Innovation Loan (PIR&D)
Why Look Beyond Grants to Fund Your R&D?
When you think of R&D financing, grants often come to mind first. It’s natural—they don’t have to be repaid and can boost your cash flow.
But here’s the catch: they can be complex and highly competitive to obtain, they target very specific expenses, they often don’t cover your full needs for prototyping, validating your technology, or pushing your go-to-market strategy.
The good news? There’s an accessible, non-dilutive, and powerful alternative: the Bpifrance R&D Innovation Loan (PIR&D)..
What Exactly Is the R&D Innovation Loan?
The PIR&D is a medium-term financing tool operated by Bpifrance o support innovative projects from French SMEs and mid-cap companies. It can provide up to €3 million,with no collateral or personal guarantee required.
- Eligible uses include:
- Salaries for engineers, developers, or researchers on the project
- Proofs of concept (POCs) or prototypes
- Technological feasibility tests
- Patent filings or IP portfolio expansion
- Market studies linked to the project
Repayment terms: 5 to 8 years,with a 1–3 year grace period before repayments start.
This means you can pursue an ambitious R&D strategy without giving up equity..
Who Can Access the R&D Innovation Loan?
- To be eligible, your company must:
- Be a French SME or mid-cap already incorporated
- Lead a clearly identified innovation project (technological, usage-based, or business model innovation)
- Have a healthy financial situation
- Show growth potential or economic impact
Note: You don’t need a deeptech label the PIR&D can also support more “traditional” innovation projects, provided they are credible and led by a strong team.
In 2023, according to Bpifrance, several hundred SMEs benefited from this financing.
What Can the R&D Innovation Loan Do for You?
- With the PIR&D, you can:
- Accelerate technology validation
- Build prototypes or run client tests
- Strengthen your intellectual property strategy
- Structure your industrialization plan
- Increase traction and valuation ahead of a fundraising round
- In short, it’s a strategic lever to create value before opening your capital.
How to Secure This Financing
Like any structured loan, the PIR&D requires a solid technical and financial file..
- You must demonstrate:
- The innovative nature of your project
- A competent, structured team
- Credible revenue or market assumptions
- A clear, balanced budget forecast
This type of application is best built with experienced financial advisors. At Flag, we help you prepare your PIR&D file, defend it with Bpifrance, and integrate it into a coherent funding roadmap.
Combining PIR&D with Other Levers
- The R&D Innovation Loan can be combined with:
- Research Tax Credit (CIR) or Innovation Tax Credit (CII)
- JEI (Young Innovative Company) tax statusYoung Innovative Company (JEI) tax status
- Regional grants or national calls for projects
An effective funding strategy often blends multiple sources. Coordinated to avoid missed opportunities. That’s exactly what we implement at Flag.
Conclusion: A Powerful Lever to Move Forward Without Dilution
Want to accelerate your innovative project without giving up equity? The R&D Innovation Loan is a direct, strategic, and startup-friendly solution.
As always, preparation is key: anticipate, structure, and surround yourself with the right partners.
How Flag Supports You
- Equity fundraising
- Non-dilutive financing: Bpifrance, grants, loans, etc.
- Tax optimization (CIR, CII, JEI)
- CFO support (CFO-as-a-Service)
Not sure where to start? Reach out, we’ll walk you through it.
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