Corona virus

The corona virus crisis is presenting major challenges not only to society, but also to businesses. The government, the Dutch Tax and Customs Administration, banks, the Qredits foundation and others will therefore accommodate your needs as an entrepreneur. In the Q&A below, you will find an up-to-date overview with the most important information about the financial support measures that you may be able to use.

Last updated: – 05/02/2021

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Financing and securities

TVL in brief

Entrepreneurs with up to 250 employees who have lost more than 30% of their turnover as a result of the corona crisis, can claim an allowance of up to EUR 90,000 for the period from 1 October to 31 December 2020. The amount of the allowance depends on the turnover decrease. With a 30% loss of turnover, the subsidy rate is 50% of the fixed costs. This increases to 70% of the fixed costs with a loss of turnover of 100%. For the fourth quarter of 2020, subsidy under the TVL scheme can be requested up to and including 29 January 2021. It will also be possible to apply for TOGS in the first and second quarters of 2021.

The subsidy granted under this scheme is not intended to cover wage costs. Companies can claim a subsidy for wage costs under the NOW-scheme 

What are the conditions?

  • The business has a maximum of 250 employees;
  • The company has lost more than 30% of its turnover due to the corona crisis;
  • The main activity must correspond to one of the established Standard Industrial Classification codes (SBI codes in Dutch);
  • The business must be incorporated and listed at the Chamber of Commerce on 15 March 2020;
  • The company has an establishment in the Netherlands;
  • At least one establishment of the company has an address other than the private address of the owner/owners. Or the establishment is separated from the private residence and has its own entrance or access;
  • The business is not bankrupt or has not filed a petition for a suspension of payments with the district court;
  • The business is not a public enterprise within the meaning of the Dutch Competitive Trading Act (Mededingingswet);
  • On the basis of the quarterly turnover and the percentage belonging to the SBI code of the company, the company must have at least EUR 3,000 fixed costs for the quarter in question.

How can you apply?

TVL can be requested from the Netherlands Enterprise Agency (RVO) via E-Recognition level 1 (or higher) or DigiD. Within 8 weeks you will hear whether your application has been approved.

Tozo in brief

If you, as a self-employed entrepreneur, have run into problems as a result of the coronavirus crisis or if you foresee problems, you can claim support on the basis of Tozo. Care providers are the only group not covered by this scheme.

Tozo 1 expired at the end of May and Tozo 2 at the end of September. Tozo has been extended to 1 July 2021. Tozo 3 runs from 1 October 2020 to 1 April 2021 and Tozo 4 will run from 1 April to 1 July 2021. 

What are the conditions?

In order to be able to claim this support, you must have started your business before 17 March 2020, work an average of 24 hours a week, be registered at the Chamber of Commerce and carry out most of your work in the Netherlands.

What kind of support can you receive under Tozo?

  • Income support: if you can demonstrate that your income during the next three months will not exceed the social minimum, you can claim an amount of up to EUR 1,500 for a maximum period of three months. The partner’s income is subject to review too. In case the household income exceeds the social minimum, you will not be entitled to a subsistence allowance.
  • Working capital: in the event of liquidity problems, you can also apply for a working capital loan of up to EUR 10,517 with an interest rate of 2% on the basis of Tozo. The working capital loan, requested under Tozo 1 or Tozo 2, does not have to be repaid until January 2021. The loan has a term of 3 years. In case you have made a previous application for working capital under the Tozo scheme, but not for the maximum amount, you can request for additional support up to EUR 10.517.

In case you require a working capital over EUR 10,157, you can apply for support under the regular Decision on assistance for the self-employed (Besluit bijstandsverlening zelfstandigen) or claim support under the Corona Small Credit Guarantee Scheme (KKC).

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Where can you apply for Tozo?

You can apply for support on the basis of this scheme from your municipality where you live. The way in which applications are submitted may vary from one municipality to another, but the municipalities try to arrange this digitally as much as possible.

As an entrepreneur, can I request a postponement for the payment of tax?

If you run into payment problems as a result of the coronavirus crisis, you can request a deferral of payment from the Tax and Customs Administration until at least 1 April 2021 with regard to income tax, corporation tax, turnover tax and wage taxes. You can request a deferral of payment for more taxes at once.

In case a tax deferral of three months has already been granted, you can still request an extension until 1 April 2021.

A request for tax deferral in case of a tax debt that is higher than EUR 20.000 requires a third party expert statement. This can for example be a statement by a tax consultant or accountant. The statement must show that the financial problems were mainly caused by the corona crisis. In addition, the statement should include a liquidity forecast.

The special deferral arrangement expires on 1 April 2021 at the latest. Tax obligations that arose on or after that date must be paid. After 1 April, you will receive a proposal for a payment arrangement for the debt accrued during the deferral. This debt can be repaid from 1 July 2021 to 1 July 2024.

Do you pay a provisional income tax or corporation tax assessment and do you expect a lower profit due to the coronavirus crisis?

In that case, you can change the provisional assessment by changing the previously entered income. If the amount of the new provisional assessment is subsequently lower than the tax you have already paid, the difference will be refunded. When your income increases again, you also have to change your provisional assessment.

BMKB(-C) in brief

The SME Credit Guarantee Scheme (BMKB) exists to meet the liquidity needs of businesses. Under this scheme, SME entrepreneurs can obtain a guarantee for part of a bank financing arrangement. The Ministry of Economic Affairs and Climate (EZK) is the guarantor for this part. The scheme enables entrepreneurs to borrow more than they could obtain on the basis of their collateral security. This measure has been extended as a result of the coronavirus crisis (BMKB-C).

What does the extension mean in practice?

  • Under the old scheme (BMKB), the credit guarantee amounted to 50% of the credit provided by the financier;
  • Under the new scheme (BMKB-C), the credit guarantee amounts to 75% of the credit provided by the financier;
  • The government guarantee amounts to 90% of this credit guarantee for SME-enterprises and 80% for large companies;
  • The measure is intended to provide a bridging loan or overdraft facility with a financier, with a maximum duration of one year;
  • Businesses with a credit requirement of up to EUR 266,667 can finance up to EUR 200,000 with BMKB credit until 30 may 2022;
  • The maximum loan has been increased to EUR 1.5 million;
  • Fees under BMKB amounted 3,9%. This has now been lowered to 2% in case of funding with a duration of up to 8 quarters and 3% in case of funding with a duration of between 9 and 16 quarters;
  • The duration of funding was originally 2 years. This has now been expanded to 4 years.

What are the conditions?

  • The business must fall within the definition of an SME. In short, the conditions are: a maximum of 250 employees (FTEs) with an annual turnover of up to EUR 50 million or a balance sheet total of up to EUR 43 million (note that specific conditions apply to groups of companies!);
  • The following sectors and funding targets are excluded: private individuals, large companies, fisheries, agriculture and horticulture, publicly insured healthcare, companies in the financial sector and real estate. These sectors have their own support bodies and regulations;
  • The financier (bank) must be associated with the BMKB(-C);
  • The financier assesses whether the business is sufficiently creditworthy and whether the financing goal fits within the BMKB;
  • The business owes a one-off commission;
  • The business must sign a declaration that it does not receive de minimis support in excess of EUR 200,000;
  • The BMKB(-C) can be provided only by one financier;
  • Extra favourable conditions may apply to start-ups and innovative entrepreneurs.

How can you apply?

The application is made via the business’ own financier. In general, the application is largely processed digitally. The information required may vary from one financier to another. Needless to say, the annual figures and income tax return forms for 2018 and 2019 will be requested.

Qredits in brief

The Qredits Microfinance Netherlands Foundation (Qredits) provides assistance to existing businesses (not starters) by providing bridge loans of a maximum of EUR 25.000. The loan is intended to bridge the period of the coronavirus.

Financing by Qredits

A bridge loan by Qredits is maximised to EUR 25.000 and will only be granted to existing businesses. The loan has a maximum duration of 48 months. There is no obligation to repay the loan in the first 6 months. This period can be extended to 12 months. The interest amounts 2% over the first year, after which it will be 5,75%. The treatment costs are EUR 275.

How can you apply?

The application is made via Qredits: https://mijn.qredits.nl/krediet/aanvraag/

Which information does Qredits need?

  • The final annual figures for 2018 and figures for 2019;
  • The interim figures for 2020;
  • An overview of your private financial situation: overview of the monthly charges;
  • A list of government measures you have used or intend to use;
  • A succinct justification of the desired financing amount.

KKC in brief

Are you a small business in need of a relatively small financing of EUR 10,000 to EUR 50,000 as a result of the corona crisis, but the bank cannot meet the need or meet it in full? In that case, the government can facilitate the required financing by means of a state guarantee. For this, the Dutch government reserved a budget of EUR 750 million.

What are the conditions?

  • You’re a small entrepreneur: micro, small or SME;
  • Your revenue is at least EUR 50.000 and the business was sufficiently profitable and financially stable before the coronacrisis;
  • An entrepreneur has to provide a guarantee in private of 10% of the loan in case an application is done by a legal entity;
  • Your business was registered at the Chamber of Commerce before 1 January 2019.

When can entrepreneurs submit an application?

You can request the KKC from the financier in question up to and including 30 June 2021.

What does KKC involve?

This scheme is intended for businesses that were profitable before the coronavirus and which are registered with the Chamber of Commerce before 1 January 2019. Under this, the government guarantees 95% of bridge loans ranging between EUR 10.000 and EUR 50.000. Financiers bear the remaining 5% of the risk.

KKC involves loans with a duration of 5 years and an interest of a maximum of 4%. You have to pay a one-off premium of 2% to the government as compensation.

Loans granted since 7 May 2020 can be refinanced under the terms of the KCC in case these loans meet the conditions as set out under the KKC-scheme.

How to apply for a KKC-loan?

In order to be able to use this scheme, the financier in question must be associated with the scheme. Applications under KKC can be made up to 30 June 2021.

The following banks are associated with the KKC scheme:

  • ING-Bank
  • Rabobank
  • Kredietunie Groningen
  • New10 (ABN-AMRO Bank)
  • Volksbank
  • Triodos Bank
  • Spotcap

COL 3.0 in brief

In practice, it became clear that several types of businesses could not qualify for support measures provided for by the government. In order to also provide assistance to startups, scaleups, innovative small and medium-sized enterprises and small and medium-sized enterprises without bank financing, the government decided to provide for a facility of EUR 300 million that can be called upon by the aforementioned types of businesses. Thus far, an amount of EUR 35 million of this facility remains unused. It is for this reason that the government decided to extend the COL facility until 30 June 2021. 

The Regional Development Institutions, being: LIOF, BOM, Oost NL, Horizon, NOM, InnovationQuarter, ROM Regio Utrecht and Impuls Zeeland will provide for these Bridge Loans. Applications can be made from 4 January 2021 onwards. This scheme furnishes Bridge Loans between EUR 50.000 and EUR 2 million.

The Regional Development Institutions strife to deal with the applications for these Bridge Loans with diligence. It aims to keep the processing time for these applications to a maximum of 3 weeks.

How can you apply?

The application does not go through the Regional Development Institutions, but by means of a specially designed web portal, namely: https://www.techleap.nl/content/bridgefinancing-portal/

What are the conditions?

  • The Bridge Loan can only be utilized to provide for additional liquidity. It cannot be utilised to pay-off pre-existing loans or other banking facilities.
  • The business has to have been affected by the Coronacrisis. This requires the company to show that its revenues have been affected.
  • The business has to prove that it can repay the loan after 1 year and that the debt can be repaid in full within 3 years.

Loans under the COL-scheme

Depending on the amount of the loan, different terms and conditions apply. However, a 3% annual interest-rate is applicable to all loans. For loans higher than EUR 250.000, co-financing for an amount of 25% is required. More information can be found here: https://www.rom-nederland.nl/qena/#type

For whom is this scheme intended?

  • Startups: this concerns unlisted companies that have not come into being by means of a merger and which has been in business for 5 years prior to the application.
  • Scale-ups: this concerns businesses with 10 to 250 employees that have seen a 60% growth in business or employees in the past five years respectively business that expect such growth in the coming 5 years.
  • Innovative small and medium-sized enterprises: this concerns businesses with up to 250 employees where research and development is conducted aiming to provide for a financial and social return.
  • Small and medium-sized enterprises without bank financing: this concerns small and medium-sized enterprises that are predominantly financed by means of own funds. This group can also apply to this scheme, but only on the condition that funds cannot be acquired on the basis of the BMKB-Scheme or GO-C scheme.

SOL in brief

This scheme is intended for start-ups located in the province of Noord-Brabant, more specifically: start-ups located in the middle and the west of Noord-Brabant. The scheme provides for assistance to startups that find themselves under pressure due to the coronacrisis. In order to provide for this assistance, the Province of Noord-Brabant and the municipalities of Breda and Tilburg raised funds in order to provide for bridge loans.

How can you apply?

You can apply for SOL via Starterslift. Through this form you will be connected to a business developer in order to discuss available options. Applications under this scheme can be made until 30 June 2021.

Ook re-integratie in Spoor 2 bij een andere werkgever kan belemmerd worden door een verplichte bedrijfssluiting bij die werkgever. Het Spoor 2 traject kan dan tijdelijk worden opgeschort en moet na afloop van de Corona periode heroverwogen en bijgesteld worden.

The facility under SOL

  • The facility has a duration of 3 years and ranges from a minimum of EUR 5.000 to a maximum of EUR 50.000, depending on the circumstances.
  • The loan is redemption and interest free until 30 August 2021, after which a monthly redemption and interest of 5% is due.
  • The loan under SOL concerns a personal loan for which you bear personal liability.

What are the conditions

  • The startup has to be registered at the Chamber of Commerce or will be registered soon;
  • De startup is not older than 6 years;
  • The business is already making use of other corona related assistance schemes or has tried to qualify for such assistance;
  • The assistance is meant for the startup and not for the repayment of credit facilities;
  • You need to be willing to reduce costs when required.

For whom is this scheme intended?

This scheme is intended for start-ups in middle and west Brabant that find themselves under pressure due to the coronacrisis. One qualifies for assistance under this scheme in case the startup is located in middle or west Brabant. Furthermore, one either needs to be student or employee at Tilburg University, Breda University of Applied Sciences or Avans Hogeschool.

For whom is the GO-C Scheme intended?

Are you a medium-sized or large business in need of financing, but the bank cannot meet this need or meet it in full? If so, the government can facilitate the required financing by means of a state guarantee on medium and large loans.

What does the extended scheme involve?

Under the GO-C scheme, the government can support the financing of your business by providing a guarantee to the bank. This arrangement existed prior to the coronavirus crisis, but has now been extended. Under the extended GO-C Scheme, the government provides a guarantee up to 80% for large enterprises and 90% for small and medium-sized enterprises for loans with a duration of a maximum of 6 years ranging between EUR 1.5 million and 150 million.

Where can you apply for this loan?

In order to be able to use this scheme, the financier in question must be associated with the scheme. The financier then applies for the guarantee from the Netherlands Enterprise Agency (RVO). Financiers can file their applications with the RVO until 15 June 2021, 17:00.

The following banks are associated with the GO-C scheme:

  • ABN AMRO
  • Bank of Tokyo-Mitsubishi UFJ (Holland)
  • Deutsche Bank AG, Amsterdam Branch
  • ING
  • NIBC Bank
  • Rabobank
  • Riverbank
  • Royal Bank of Scotland (RBS)
  • Société Générale
  • Triodos Bank

De corona periode laat de administratieve verplichtingen van de werkgever ongewijzigd in stand. Volgens UWV kan informatie ook elektronisch uitgewisseld worden. Bovendien zijn fysieke handtekeningen op documenten niet nodig.

TOPPS in brief

TOPPS has been developed by Invest-NL in cooperation with Techleap.nl and the Regional Development Institutions. Invest-NL reserved an amount of EUR 100 million in order to provide for loans under this scheme. The goal of this scheme is to safeguard sufficient venture capital to startups and scale-ups aimed at providing capital to companies to continue their activities. It concerns loans of a minimum of EUR 2 million in which professional are involved next to Invest-NL.

What are the conditions?

The most important requirements to qualify for TOPPS are:

  • The bridge loan can only be utilised to provide for additional liquidity. It cannot be utilised to pay-off pre-existing loans or other banking facilities.
  • The need for financing needs to find its basis in the effects from the coronacrisis.
  • 50% of the loan needs to be co-financed.
  • The business has to be able to show a strong track record from before the coronacrisis and must show a healthy turnover potential for the future.

How can you apply?

Application is made via Techleaps.nl: https://www.techleap.nl/content/bridgefinancing-portal/

For whom is this scheme intended?

TOPPS is aimed at innovative startups and scale-ups with a healthy financial perspective who are stopped in their development drive or future plans because  they are not able to attain financing from financial institutions who have become reluctant to provide loans due to the coronacrisis.

Loans under the TOPPS-scheme

The loan takes the form of a convertible loan with an interest rate of 8%. The interest must be paid at the moment of repayment of the loan or it can form part of the conversion. The loan is redemption free and has a duration of 3 years. More information can be found at: https://www.invest-nl.nl/page/862/aanvullende-informatie-tijdelijk-overbruggingskrediet-innovatieve

This facility is closed as per 26 June 2020. It is therefore not possible to apply for assistance under this facility. Entrepreneurs can apply for support under TVL (Fixed Costs Compensation for SME).

 

BL-C In brief

A specific credit guarantee scheme (BL) exists to meet the liquidity needs of agricultural businesses. On the basis of this scheme, agricultural businesses can obtain a guarantee for part of a financing arrangement. The government guarantees this part. The scheme enables agricultural businesses to borrow more than they could obtain on the basis of their collateral security. This measure has been extended as a result of the coronavirus crisis (BL-C). Applications can be made until 31 March 2021.

What does the extension mean in practice?

  • The measure is intended to provide a bridging loan or overdraft facility with a financier, with a maximum duration of one year;
  • The business can obtain a maximum credit of EUR 1.5 million (EUR 2,8 million in case of an agricultural Plus credit guarantee scheme (BL-plus loan).
  • The maximum maturity of the BL-C credit is 24 months;
  • The government guarantee amounts to 70% of this credit guarantee;
  • The financier assesses whether the business is sufficiently creditworthy and whether the financing goal fits within the BMKB.

What are the conditions?

  • The business must fall within the definition of an SME. In short, the conditions are: a maximum of 250 employees (FTEs) with an annual turnover of up to EUR 50 million or a balance sheet total of up to EUR 43 million (note that specific conditions apply to groups of companies!);
  • The following sectors are excluded: real estate operation, insurance and finance businesses, publicly insured healthcare, legal profession, bailiffs, SMEs other than in the agriculture and horticulture sector;
  • The financier (bank) must be associated with the BMKB(-C);
  • The business owes a one-off commission;
  • The BMKB can be provided only by one financier;
  • Extra favourable conditions may apply to start-ups and innovative entrepreneurs.

How can you apply?

The application is made via the business’ own financier. The following banks are associated with the BL-C scheme:

– ABN AMRO Bank
– Deutsche Bank
– ING Bank
– Rabobank
– Triodos Bank
– NIBC

The application is made via the business’ own financier. In general, the application is largely processed digitally. The information required may vary from one financier to another.

You have a financing arrangement with a bank, but foresee that in the near future you will get in repayment difficulties. What can you do?”]First of all, it is important to check whether you have agreed with your bank that you must meet certain ratios during the period to maturity. Is that the case and do you expect that, due to the coronavirus crisis, you will no longer be able to meet these ratios at some point? For the bank, this constitutes a ground for termination of your financing. It is wise to proactively inform your bank about this and make agreements. This could take the form, for instance, of a waiver letter. This is a statement on the basis of which the bank (temporarily) waives immediate demandability, while making new arrangements.

At the beginning of the crisis, banks stated that there were sufficient buffers in place to be able to take measures where necessary in connection with the coronavirus crisis. In this context, banks indicated that a deferral of payment was possible. In case you had a loan that did not exceed EUR 2.5 Million, banks readily provided for a deferral of payment ranging up to 6 months in case the business was fundamentally sound. As of this date, postponement of payment is not being granted as easily and is now only granted as a tailor made solution in case the complies with the bank’s requirements.

Werkgevers lopen ook tijdens of als gevolg van de Corona crisis een risico op een loonsanctie. UWV is zich er echter van bewust dat als gevolg van de Corona crisis bijzondere omstandigheden kunnen ontstaan die ertoe leiden dat werkgevers in het kader van de re-integratie van zieke werknemers tegen problemen aanlopen. De werkgever dient in het re-integratieverslag (RIV) te motiveren waarom en gedurende welke periode de re-integratie is gestagneerd. UWV zal beoordelen of er gezien de bijzondere omstandigheden in alle redelijkheid toch voldoende aan re-integratie is gedaan.

Contact

Do you have legal questions about the consequences of the corona virus on your business operations? Then contact our first-line telephone number. You can of course always contact your regular contact person.
We are happy to help you!

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