Cabinet expands support for entrepreneurs due to coronavirus

Note: the date of this news report is April 7, 2020. Read the current information about the Dutch approach and measures against the coronavirus.

Minister Wiebes and State Secretary Keijzer (EZK): “The cabinet is doing what is necessary in these exceptional and difficult times. When announcing the Emergency Package for Jobs and Economy, we immediately said these schemes would not stand still. The extended health measures of the cabinet have a greater, direct impact on groups of entrepreneurs. Therefore, we are making billions in support available again. We are also making financing options more accessible for all entrepreneurs. And we again call on companies to help each other.”

The cabinets health measures, extended until April 28, 2020, have direct consequences for income in certain specific sectors. For example, due to the forced closure of food and beverage establishments and events, the ban on personal care professions, cancellations in the travel sector due to the essential travel only advice for Dutch residents, and the obligation to keep one and a half meters distance.

Through the TOGS scheme, these specific groups of entrepreneurs have been able to receive a one-time compensation of 4,000 euros net since Friday, March 27, to cover fixed costs such as rent. For ongoing personnel costs, the cabinet has taken other measures which are also part of the Emergency Package for Jobs and Economy.

The cabinet has today decided to supplement the TOGS scheme. As a result, various personal care professions such as tattoo shops, which previously could not register because they lacked a specific code in the Trade Register, now have access to the TOGS scheme. Smaller SMEs in food, services such as taxis, practices of dentists, physiotherapists, and suppliers to food and beverage establishments or (cultural) events have also been added.

Apply for the TOGS scheme here or view the full list of SBI codes (.pdf)

Added entrepreneurs can access the expanded TOGS from April 15, 2020 at the latest.

Companies experiencing difficulties obtaining bank loans and guarantees can use the Guarantee Entrepreneur Financing scheme (GO). The cabinet has today decided to further increase the GO guarantee ceiling to 10 billion euros (previously expanded on March 17, 2020 from 400 million to 1.5 billion euros).

With the GO, the Ministry of Economic Affairs and Climate supports both SMEs and large companies by guaranteeing bank loans and guarantees (minimum 1.5 million – maximum 50 million euros per company). The maximum guarantee percentage was today increased from 50% to 80% for large companies and 90% for SMEs, provided they are affected by corona. The maximum per company was already temporarily increased to 150 million euros on March 17.

The cabinet has decided to lower the premium for the SME Guarantee Scheme (BMKB) from 3.9% to 2%. This reduction makes financing more accessible for entrepreneurs. The cabinet also expects banks to continue to carefully consider their own costs charged to customers and whether these remain reasonable.

Additionally, the guarantee budget of the BMKB is increased from the available 765 million euros to 1.5 billion euros. It has also been decided that non-bank financiers can accredit themselves to finance their existing customers under the corona module of the BMKB.

The cabinet also enables startups, scale-ups, and other innovative companies affected by the corona crisis to apply for bridging credit. These companies often do not have a banking relationship. Therefore, at the cabinets request, Regional Development Agencies (ROMs) will provide these credits. The cabinet initially makes 100 million euros available. The scheme is expected to be accessible in the fourth week of April.

Dutch entrepreneurs can apply for exceptional financial support from the cabinet due to the economic consequences of corona through a broad emergency package. Besides the measures mentioned above, this includes the temporary wage cost compensation scheme (NOW) and extra support for self-employed persons (TOZO). Companies can also make use of various tax measures.

Entrepreneurs with questions about financial measures can visit Government.nl/coronavirus

More questions? Then contact the KVK corona desk.

Entrepreneurs apply for expanded credit schemes (such as BMKB and GO) via their credit provider such as a bank. The wage cost compensation and support for self-employed persons run via the Ministry of Social Affairs and Employment. Guidelines for shops can be found at trade organizations. For tax measures, entrepreneurs can contact the Tax Administration Business via belastingdienst.nl/coronavirus.