Fixed Costs Compensation and Compensation for Affected Entrepreneurs
The Fixed Costs Compensation Scheme (TVL) was available from June 2020 for entrepreneurs who faced significant loss of revenue due to corona measures. For example, because their restaurant or store had to close temporarily to limit the spread of the virus. A total of over €10 billion in TVL subsidies has been distributed, covering 421,816 granted applications, with an average subsidy amount of over €24,000. Before the TVL came into effect, entrepreneurs could receive a one-time payment of €4,000 from the government through the Compensation for Affected Entrepreneurs (TOGS).
The evaluation shows that the TVL and TOGS schemes likely helped prevent companies from facing financial difficulties or going bankrupt. The use of public funds has also proven to be justified. The TVL was experienced as accessible and user-friendly. Entrepreneurs indicated in surveys that they were satisfied with the conditions, the application process, and the speed of payment. Thanks to the collaboration between implementing agencies such as RVO, the Tax Authorities, and the Chamber of Commerce, swift and effective action could be taken.
Minister Karremans of Economic Affairs emphasizes the importance of the schemes: “The schemes provided entrepreneurs with breathing space at a time when revenue was lost, but rent and other fixed costs continued. The TVL and TOGS made the difference between surviving or failing for hundreds of thousands of entrepreneurs during the corona period.”
Entrepreneurs who used the TVL scheme during the corona crisis may face a recovery claim, for example, when their revenue drop turned out to be lower than previously estimated. Entrepreneurs with payment problems are strongly encouraged to contact RVO or support organizations such as the Chamber of Commerce, GeldFit Zakelijk, or their municipality in a timely manner. Together, a suitable solution, such as a payment arrangement, is sought.