Agenda

DUTCH CABINET EXPANDS SUPPORT FOR ENTREPRENEURS DUE TO CORONA

09/04/2020

1. Supplement TOGS arrangement from April 15: one-time donation to directly affected entrepreneurs

The government's health measures, which have been extended until 28 April 2020, have direct consequences for revenues in a number of specific sectors.

Since 27 March 2020, specific groups of entrepreneurs can receive a one-off net allowance of 4,000 euros via the TOGS arrangement. The Dutch cabinet decided to supplement the TOGS arrangement. Various contact professions such as tattoo shops, smaller SME retailers in the food industry, services such as taxis, practices of dentists, physiotherapists and suppliers of food and beverage outlets or (cultural) events have been added to the groups of entrepreneurs who are eligible for a one-time gift.

2. More access to financing options through the GO scheme

Businesses that experience problems in obtaining bank loans and bank guarantees can use the Guarantee Business Financing scheme (GO). The government has decided to further increase the GO's guarantee ceiling to EUR 10 billion (had already been increased on March 17, 2020 from EUR 400 million to EUR 1.5 billion). The maximum guarantee percentage has now been increased from 50% to 80% for large companies and 90% for SMEs with the condition that they are affected by corona.

3. Lower premium BMKB scheme and increase guarantee budget

The Dutch Cabinet has decided to reduce the premium for the Guarantee of Small and Medium-sized Enterprises (BMKB) scheme from 3.9% to 2%. In addition, the BMKB's guarantee budget will be increased from the available 765 million euros to 1.5 billion euros. It was also decided that non-bank financiers can accredit themselves to finance their existing customers under the corona module of the BMKB.

4. Specific credit options for startups and scale-ups

The Dutch Cabinet also makes it possible for startups, scale-ups and other innovative companies affected by the corona crisis to apply for a bridging loan. The Regional Development Companies (ROMs) will provide these credits at the request of the Dutch Cabinet. The Dutch Cabinet will initially make 100 million euros available for this.