More and more entrepreneurs are running out of reserves due to the long duration of the crisis and need money to pay their fixed costs and purchase new stocks. A group of people is also at risk of falling through the cracks due to significant income loss caused by the corona measures. Therefore, the cabinet has further expanded the support and recovery package for jobs and the economy.

Increased Compensation for Fixed Costs

The subsidy percentage of the TVL will be increased from 85% to 100% in the second quarter of 2021 at the proposal of the House of Representatives. The amount of compensation is dependent on the subsidy percentage, the revenue loss of a company, and the fixed costs percentage of the sector. Entrepreneurs can make use of the TVL if they suffer more than 30% revenue loss. The TVL scheme for the second quarter is expected to open from mid-May. The cabinet has allocated 450 million euros for this increase.

Significant Increase in Financial Support for TONK

If there is significant income loss due to the corona crisis and existing arrangements from the support and recovery package are insufficient to cover fixed costs, households can turn to their municipality for support via the TONK. A total of 130 million euros was allocated for this scheme for the first half of 2021. Due to the ongoing corona crisis and extended lockdown, the cabinet has now decided to increase this amount to 260 million euros. It is the wish of the cabinet and the House of Representatives that the TONK can substantially help households with financial problems in covering their fixed (housing) costs and thus help prevent a piling up of further problems.

The TONK has been available for application since March or will soon be available for application. This varies by municipality. Municipalities also make different choices in determining the target group and the amount of compensation, as they can best assess what is specifically needed in their municipality. The cabinet has urged municipalities to be generous in granting the TONK. Applicants can also turn to their own municipality for further information. Regardless of the start date in their own municipality, the TONK can be applied for retroactively from January 1, 2021.

Other Measures

The cabinet is also allocating 150 million euros for the mobility cluster in the manufacturing industry. This is intended to keep investments in research and development in the automotive, aviation, and maritime sectors on track. The scheme is aimed at (manufacturing) companies, including many SMEs. Through public-private partnerships, these companies can involve knowledge institutions in research and development projects.

The cabinet is in discussions with the large retail sector about the issues faced by larger retail chains and possible solutions. These discussions will continue.

Where Can Entrepreneurs and Workers Turn To?

For questions about the corona support and recovery package, companies and workers can visit rijksoverheid.nl/support-package. Entrepreneurs can also visit the website of the Chamber of Commerce for more questions: kvk.nl/corona. If the answer to your question is not there, call the advisory team at 0800 – 2117. Workers and job seekers can also turn to hoewerktnederland.nl.

Entrepreneurs register for credit schemes with their credit provider, such as their bank. The wage cost compensation scheme (NOW) runs through the UWV and support for self-employed entrepreneurs (Tozo) through their municipality. Compensation for Fixed Costs for SMEs (TVL) runs through RVO. For tax measures, entrepreneurs can turn to the Business Tax Office.