Good news! Cabinet decision more support for startups and scaleups, among others!
Cabinet expands support for entrepreneurs due to coronavirus
Tonight the cabinet announced additional measures to support entrepreneurs because of the economic consequences of the corona virus. These include additional financing through the Guarantee Entrepreneurship Financing (GO scheme) and specific credit opportunities for start-ups and scale-ups. In addition, the premium for the expanded Small and Medium Enterprises Guarantee Scheme (BMKB) will be reduced. The government will also reinsure supplier credit up to an amount of 12 billion euros. In addition, more companies will receive a one-time grant as compensation for the consequences of measures taken by the government to combat the coronavirus: the aim is to open up this specific extension by April 15, 2020. Minister Eric Wiebes and State Secretary Mona Keijzer of Economic Affairs and Climate (EZK) and State Secretary Hans Vijlbrief (Finance) announced this in a parliamentary letter today.
Specific lending opportunities for startups and scale-ups
Good news! The cabinet is also making it possible for startups, scale-ups and other innovative companies affected by the corona crisis to apply for bridging loans. At the request of the cabinet, the Regional Development Companies (ROMs) will provide these credits. The Cabinet will initially make 100 million euros available for this purpose. This scheme is expected to be accessible in the fourth week of April.
Supplement TOGS scheme from April 15: one-time gift directly affected entrepreneurs
The government's health measures, which have been extended until April 28, 2020, have direct consequences for income in a number of specific sectors. Through the TOGS scheme, since Friday, March 27, these specific groups of entrepreneurs can receive a one-time allowance of 4,000 euros net with which they pay their fixed expenses, such as the rent of business premises. For ongoing personnel costs, the Cabinet has taken other measures that are also part of the Emergency Package for Jobs and the Economy. Today, the Cabinet decided to supplement the TOGS scheme. This will allow companies that did not have a specific SBI code in the Trade Register to still access the TOGS scheme.
For info on the application check here: https://www.rvo.nl/subsidie-en-financieringswijzer/tegemoetkoming-schade-covid-19
Increased access to funding opportunities through the GO scheme
Enterprises experiencing difficulties in obtaining bank loans and bank guarantees can use the Guarantee Entrepreneur Financing(GO) scheme. The Cabinet decided today to further increase the guarantee ceiling of the GO to 10 billion euros (had already been expanded on March 17, 2020 from 400 million to 1.5 billion euros). With the GO, the Ministry of Economic Affairs helps both SMEs and large enterprises. This is done by guaranteeing bank loans and guarantees (minimum 1.5 million - maximum 50 million euros per enterprise). The maximum guarantee percentage was raised today from 50% to 80% for large enterprises and 90% for SMEs with the condition that they are affected by corona. The maximum per enterprise had already been temporarily widened to 150 million euros on March 17.
Lower premium BMKB scheme and increase in guarantee budget
The Cabinet has decided to reduce the premium for the Guarantee for Small and Medium Enterprises(BMKB) scheme from 3.9% to 2%. This reduction will make financing more accessible to entrepreneurs. In addition, the guarantee budget of the BMKB will be increased from the available €765 million to €1.5 billion. It was also decided that non-bank financiers can accredit themselves to finance their existing clients under the corona module of the BMKB.
Source: central government.com
