Next week, the second emergency support package for entrepreneurs will go into effect on June 1 (2020), the Chamber of Commerce site reported today. The new package consists of adjustments to existing schemes and 1 new scheme. The package better matches what entrepreneurs need in the coming months. Among other things, there will be an allowance for fixed costs of up to 20,000 euros for SMEs that suffer considerable loss of turnover due to the corona crisis. The NOW and the Tozo will be extended in modified form. The severance penalty will disappear.
As much as 13 billion euros has been allocated by the cabinet for the second emergency package. This additional support package will help entrepreneurs get through the period until the end of August. Now that we are no longer in the outbreak phase, but in the transition phase of the corona crisis, adjustment of the package of schemes was necessary. Whereas the focus of Emergency Package 1 was on job retention and temporary bridging credit, among other things, the second package pays extra attention and allocates funds for further training, retraining and allowances for paying fixed expenses.
The goal is still to retain as many jobs as possible, but not all layoffs and bankruptcies can be prevented. This requires entrepreneurs and workers to adapt to a changing Dutch society and economy, the cabinet said.
These are the adjustments from the second aid package:
1. SME Fixed Charge Allowance (TVL), the successor to the TOGS
As of mid-June, this scheme is the successor to the TOGS and is intended for SMEs that structurally lose more than 30% turnover due to the corona crisis. Companies that meet the conditions can receive up to 20,000 euros of relief per 3 months to be able to continue to pay fixed expenses (excluding labor costs). Companies in sectors eligible for the TOGS will soon be able to take advantage of the TVL. One billion euros has been allocated for the scheme. The TVL will be implemented by RVO. Applications are expected to be possible from mid-June, when the TOGS scheme expires. The TVL starts retroactively on June 1 and ends on August 31. Read more about the new TVL scheme here: Look here.
2. Tozo 1 becomes Tozo 2 and is valid until the end of August
The Temporary Bridging Scheme for Independent Entrepreneurs (Tozo) is extended, with modified conditions, by 3 months until the end of August. The extended scheme is called Tozo 2. With the extension, entrepreneurs who currently receive subsistence benefits and meet the conditions of Tozo 2 can receive Tozo benefits through August. The Tozo 2 is also open to new applications. An important difference with Tozo 2: now the income of the partner does count when determining the amount of the benefit. The partner income test is performed when you apply for the supplemental living allowance. If the household income is above the social minimum, you are not entitled to this scheme.
3. NOW will be extended
The NOW will also get a sequel next summer. The new version of this wage subsidy is similar to its predecessor, but the NOW 2.0 does have some conditions adjusted:
- The severance penalty will be eliminated. Thus, companies receiving NOW 2.0 will no longer receive an additional reduction on their NOW grant if they lay off employees for business reasons. However, employers will receive a correction if they lay off staff they receive NOW on.
- Because the adjustment could potentially lead to layoffs, the cabinet is allocating 50 million euros for staff retraining through the crisis program NL learns by. Employers applying for the NOW must encourage their employees to engage in further training and retraining. Employers make a statement about this when applying for the NOW 2.0.
- The fixed (flat-rate) surcharge is increased from 30 to 40 percent. This will allow the NOW to contribute to costs other than labor costs.
- The reference month for the wage bill will be March 2020. In addition, in the already running NOW scheme, March is also taken as the reference month if the wage bill in the months of March-May is higher than in January-March. This is important for seasonal businesses.
- In addition, a company using the NOW over this year may not distribute profits to shareholders, pay bonuses to the board and management, or repurchase its own shares.
4. Tax payment deferral extended to Sept. 1, 2020
The Inland Revenue is granting longer deferral of payment to entrepreneurs. Repayment is not required again until September 1. Any default penalties for not paying on time do not have to be paid. Tax interest and collection interest for all tax resources have been reduced to 0.01% until October 1, 2020. Other tax measures from the first aid package, such as a relaxation of the hour criterion for self-employed workers and the payment break for mortgage obligations, have also been extended until September 1, 2020.
5. Corona lending and guarantees to entrepreneurs are ongoing
Additional, expanded or more accessible lending and guarantees to small and medium-sized businesses, startups and scale-ups from the first emergency package continue. You can read more about them on our schemes page.
You can ask all your questions about corona at the KVK Corona Office or call 0800 2117.
