The coronavirus has had the Netherlands in its grip for quite some time now. In this article, we give an overview for entrepreneurs of the measures taken. Do you want to learn more about the impact of the coronavirus crisis on the Arnhem – Nijmegen – Wageningen area? We collect news stories, webinars, support options and more on our coronavirus page!
Since a package of emergency measures was first announced by the cabinet, some changes have been implemented. The emergency package made way for a support and recovery package. Some new conditions and types of support were also introduced. The duration of the package has been extended to 2021. The article below has been supplemented.
SME Credit Guarantee Scheme (BMKB)
The BMKB (‘Borgstelling midden- en kleinbedrijf’) supports entrepreneurs during the coronavirus crisis. They can use the scheme to get a bridge loan or to up their overdraft limit. Since its inception, the scheme has been expanded. This expansion entails that the credit guarantee has been upped from 50 percent to 75 percent, so that banks can increase credit more easily and quickly, and business can borrow more and sooner. The duration of the credit has been extended to four years, so that entrepreneurs have more time for repayment.
Furthermore, the BMKB interest percentage has been lowered from 3.9 to 2 percent for a duration of up to and including eight quarters, and 3 percent for a duration of nine to sixteen quarters. This decrease makes the scheme more accessible for entrepreneurs. The cabinet has made thirty million euros available to this end.
The guarantee budget of the BMKB has also been increased from 765 million euros to 1.5 billion euros, and the cabinet has decided that accreditation should be available to other financiers than just banks, so that these can provide funding for their existing clients under the coronavirus module of the BMKB.
To be eligible for the SME Credit Guarantee Scheme, your company should have no more than 250 staff members and a maximum annual turnover of 50 million euros, or a balance sheet total of 43 million euros. The business should also be more than three years old. Start-ups may also apply if they take out a start-up loan with their bank. Access to the BMKM scheme has been made easier thanks to the use of a turnover test instead of an extensive liquidity forecast. The liberalisation of the SME will run until the end of 2021.
For start-ups, investments aimed at technological innovation and activities affected by PFAS- and/or nitrogen-related issues, there are additional support measures within the BMKB scheme.
Compensation Fixed Charges (TVL)
The TVL (‘Tegemoetkoming vaste lasten’) is aimed at SME entrepreneurs with less than 250 staff members in seriously affected sectors like hospitality, recreation, events, fairgrounds, performance venues and theatres. In the fourth quarter of 2020, all SBI codes (SBI codes are used for the classification of business activities) are temporarily admitted to the TVL. On top of the NOW (‘Noodmaatregel Overbrugging voor Werkgelegenheid’), SMEs might be eligible for the TVL subsidy. The subsidy amount depends on how high the fixed costs and extensive the loss of turnover are.
The TVL subsidy consists of two parts, each with its own conditions: TVL before 1 October 2020 and TVL after 1 October 2020. The main conditions for the TVL from 1 October 2020 onwards are:
- The business has a maximum of 250 employees.
- The business has suffered a loss of turnover of more than thirty percent because of the coronavirus crisis.
- The business has a location in the Netherlands.
Due to the recently strengthened coronavirus measures, a number of temporary adjustments also apply in the fourth quarter of 2020. The Ministry of Economic Affairs and Climate Policy (‘Economische Zaken en Klimaat’ – EZK) has made 791 million euros available for additional support to businesses. The main adjustments are:
- All SMEs with a loss of turnover of thirty percent, will be given access to the TVL. Temporarily, there will be no restrictions on SBI codes (any business, regardless of its SBI code may apply). This will only be the case during the fourth quarter of 2020, from 1 October through to 31 December 2020.
- Businesses can apply for the TVL in three periods of three months. Each period will require a new application by the entrepreneur. (Period 2: 1 October 2020 through 31 December 2020. Period 3: 1 January 2021 through 31 March 2021. Period 4: 1 April 2021 through 30 June 2021.)
- The business has fixed costs of at least 3000 euros in three months (instead of 4000 euros in four months).
- The maximum subsidy amount will be 90,000 euros per three months (instead of 50,000 euros per four months).
- After 1 January 2021, TVL will slowly be phased out. The cut-off for loss of turnover will then be upped incrementally. Until 31 December 2020, the current threshold of at least thirty percent loss of turnover still applies.
- Bars and restaurants will receive an extra subsidy for inventory costs and adjustments.
- Companies in the events industry will receive a fixed amount that is calculated on the basis of this summer’s TVL subsidy. This separate module is currently being finalised and will be made available later.
→ Read all about the TVL after 1 October 2020 here (in Dutch)
Applications for the TVL for the fourth quarter of 2020 can be made through the Netherlands Enterprise Agency RVO from the middle of November onwards.
→ Read all about applying for the TVL here (in Dutch)
Entrepreneurs with staff: Temporary Emergency Bridging Measure (NOW)
The NOW (‘Noodmaatregel Overbrugging voor Werkgelegenheid’) was created to help entrepreneurs pay their wage costs. Businesses that expect a loss of turnover of at least twenty percent over four months’ time, could receive a reimbursement of up to eighty percent of their wage costs. After NOW1.0 and NOW2.0, NOW3.0 has come into force on 1 October 2020. Entrepreneurs can apply for NOW3.0 from the middle of November onwards, and can be applied retrospectively until 1 October 2020. Applications for the NOW2.0 were eligible for submission up to and including 31 August 2020 and this iteration of the scheme ended on 1 October 2020.
The NOW serves two purposes. It offers aid to companies in order for them to survive the crisis, and to maintain employment. Secondly, it gives business the opportunity to prepare to the new economic situation. The main changes embodied in NOW3.0 compared to NOW2.0 are:
- NOW3.0 applies until 1 July 2021 (three periods of three months).
- From the second period onwards, the minimum loss of turnover required to be eligible for the scheme is upped from twenty to thirty percent.
- The compensation percentages will slowly decrease from eight tot sixty percent.
- Although the compensation will be decreasing, there is the option to gradually decrease the wage bill with up to twenty percent, without this cutting into the subsidy.
- The reduction to the subsidy that was applied in the NOW2.0 whenever there was a dismissal for economic reasons, has now been removed from the scheme.
- The maximum wage compensation per staff member will be reduced to a maximum of once the daily wage in the third period.
Self-employed professionals: Temporary Bridging Measure for Self-Employed Professionals (Tozo)
When self-employed professionals run into financial difficulties in normal circumstances, they can make use of the Decree on Assistance to the Self-Employed (‘Besluit bijstandsverlening zelfstandigen’ – Bbz). The National Government has created a similar measure — but with less conditions — for the coronavirus crisis: The Temporary Bridging Measure for Self-Employed Professionals (Tozo). The scheme is implemented by local municipalities. Following Tozo 1 and Tozo, Tozo 3 was launched on 1 October 2020.
It will run until 1 July 2021. You can apply for Tozo 3 through your local municipality. If you are already receiving a Tozo 2 payment, it will not be renewed automatically. Moreover, Tozo 3 – unlike Tozo 1 and 2 – cannot be applied for retroactively for the entire application period. During October and November of 2020, it is possible to apply for Tozo 3 retroactively up until 1 October 2020, but from 1 December 2020 onwards, this can only be done until the first day of the month in which the application was made.
Tozo allows you to receive income support up to the minimum social income. The amount of the Tozo payment depends on your age and family situation; the partner’s income is also considered, for instance. Just as with Tozo 2, the rule is that if the income of the household exceeds the minimum social income, you are not eligible for a Tozo 3 pay-out. From 1 April 2021, when Tozo 4 will come into effect, a limited means test will also apply. More information about this will be made available at the beginning of 2021.
Self-employed professionals can also apply for a loan for operating capital if they are confronted with liquidity issues. The loan for Tozo 1, 2 and 3 combined is limited to a maximum of 10,157 euros with 2 percent interest. The maximum duration of the loan is three years. Repayment is not required until January 2021.
Click on your municipality for more information (in Dutch) regarding Tozo:
- Berg en Dal
- Mook en Middelaar
Job-related Investment Reduction (BIK)
To provide incentive for businesses to keep on innovating during the coronavirus crisis, the cabinet has introduced the BIK (‘Baangerelateerde investeringskorting’ in Dutch). Four billion euros has been made available for this temporary measure. The BIK allows businesses to offset the costs of investments against wage taxes. This ensures that the same investment benefits all businesses equally, and not just those that are making a profit.
The job-related investment reduction only applies to new investments in operating assets of which the investment obligation came into effect on or after 1 October 2020. Furthermore, the investments need to be fully paid for between 1 January 2021 and 31 December 2022 and put into service within six months after that full payment.
From 1 September 2021, businesses who would like to qualify for the scheme can apply with the Netherlands Enterprise Agency RVO, which implements it together with the Tax Authorities.
→ Read all about the BIK here (in Dutch)
Small Credit Guarantee for SMEs (KKC)
The KKC (‘Klein Krediet Corona’) scheme is designed to help small-scale entrepreneurs, as it can often be difficult for them to get access to financial aid. Through this scheme, the Dutch government underwrites 95 percent of 750 million euros of bridging loans for small enterprises that have a financing need of 10,000 to 50,000 euros.
Small, medium-sized, and micro-enterprises with a turnover of more than 50,000 euros can apply for the loan. This can be done until 30 June 2021 through an accredited, approved financier.
Do you own an SME and have your international activities been impacted by the coronavirus crisis? Find solution with the help of an external advisor. The voucher covers eighty percent of the costs and could equal up to 2500 euros ex. VAT. The Kickstart Voucher has been available since 26 June. Applications can be made through the RVO.
Time-out Arrangement (TOA)
The Time-out Arrangement (TOA) allows entrepreneurs to pause their business temporarily. This is the cabinet’s way of trying to avoid bankruptcies. In future, the Act on Confirmation of Private Restructuring Plans (WHOA – ‘Wet Homologatie Onderhands Akkoord) will allow businesses that have been hit hard by the coronavirus crisis a soft landing, in order to limit the significant negative consequences of the crisis for entrepreneurs. This is a rather complicated, technical piece of legislation. The TOA will help entrepreneurs make use of this law and will remove difficulties that entrepreneurs might encounter in using it.
→ Read all about TOA here (in Dutch)
Corona Bridging Loan (COL) – closed
The Corona Bridging Loan (‘Corona-Overbruggingslening’ – COL) was available for start-ups, scale-ups and other innovative SMEs currently impacted by the coronavirus crisis. The cabinet has made 300 million euros available for the COL. The bridging loans were provided by the regional development corporations (‘Regionale Ontwikkelingsmaatschappijen’ – ROMs). Gelderland’s ROM is Oost NL, Limburg’s ROM is LIOF (for entrepreneurs from the municipality of Mook en Middelaar).
Compensation Entrepreneurs Affected Sectors COVID-19 (TOGS) – closed
Applications for the Compensation Entrepreneurs Affected Sectors COVID-19 (TOGS – ‘Tegemoetkoming Ondernemers Getroffen Sectoren’) could be made from 27 March up to and including 26 June 2020. Businesses from both the food and non-food sectors could apply for a one-time compensation of 4000 euros. This compensation was intended to allow entrepreneurs to pay their fixed charges.
Emergency package for agriculture, horticulture, and fisheries
Many businesses in agriculture, horticulture and fisheries have been faced with a substantial loss of turnover, as the export market and their largest domestic selling market – hospitality – have temporarily been taken out of the equation. In order to meet entrepreneurs in these sectors halfway, the cabinet has created various measures. The Credit Guarantee Scheme for Agriculture (‘Borgstelling MKB-Landbouwkredieten’ – BL-C), has been expanded temporarily, for instance. The Ministry of Agriculture, Nature and Food Quality guarantees seventy percent of the coronavirus bridging loans that banks provide to agricultural entrepreneurs. Fisheries can also make use of this scheme. Applications can be made until 31 March 2021.
The cabinet has made 600 million euros available for businesses in the ornamental plant sector and specific parts of the vegetable horticulture subsector specialising in products for the hospitality sector. Up to seventy percent of the loss of turnover is compensated for. Applications could be made between 7 May 2020 to 18 June 2020.
For impacted growers of potatoes that are used for fries 50 million euros were made available. They received a compensation of forty percent of the average market value of the amount of potatoes they still had in storage. Applications could be made between 7 May 2020 to 18 June 2020.
Cultural and creative sector
The cabinet is accommodating the cultural and creative sector with various measures. Institutions and self-employed professionals can use the general as well as the sector-specific measures. Furthermore, three hundred million euros of supplementary support is available through five schemes. The goal of this supplementary support is mainly to help out institutions that are important to the sector as a whole, for instance because they are generating employment opportunities for other institutions and self-employed professionals.
The cabinet announced on 28 August that it would make an additional 482 million euros available for the cultural sector, on top of the general support measures.
During these times, it is more important than ever that people are kept abreast of development concerning the coronavirus and news from their direct local environment. News media are crucial in this regard. In order to allow it to function properly, the cabinet is taking action in three ways: general measures, forbearance measures and the temporary support measure for local media. The general measures also apply to the media sector. As part of the forbearance measures, the Regional Public Broadcasters provided two million euros to stimulate regional and local journalism. Finally, the cabinet opened a support fund to aid local information services, such as door-to-door papers and local newspapers, that have run into trouble because of the coronavirus crisis.
In order to provide some financial space for entrepreneurs who have run into difficulties because of the coronavirus crisis, the cabinet implemented various tax measures. Most of these were in effect until 1 October 2020, like the option of a first tax deferral. The deferral period itself runs until 31 December 2020. If your tax payments have already been deferred, you can extend this period until 1 January 2021 any time before the end of the year. Repayment of tax debts will start from 1 July 2021 with a payment arrangement of 36 months.
The cabinet extends the lowered recovery interest of 0.01 percent (the usual interest rate is four percent) through 31 December 2021. This applies to all tax debts.
On 1 October 2020, the tax interest rate returned to the original level of four percent, to stimulate people to submit their tax returns on time. De tax interest for business tax will be fixed at four percent through 31 December 2021, instead of the original eight percent, so that entrepreneurs who are faced with tax interest are not also instantly faced with high financial burdens.
→ Read all about the government’s tax measures here (in Dutch)
All twenty municipalities of the Arnhem – Nijmegen – Wageningen area have allowed their entrepreneurs deferment of tax payments. Please note: you do need to apply for this through your own municipality.
The government is making it easier for businesses to obtain bank loans and guarantees by broadening the Corporate Finance Guarantee (Coronavirus Facility) Scheme (‘Garantie Ondernemingsfinanciering uitbraak coronavirus’ – GO-C). For large businesses and SMEs, the ceiling for guarantees has been extended from 1.5 billion euros to 10 billion euros (GO and GO-C combined). The maximum amount that businesses can borrow has been upped to 150 million euros. On has been upped from fifty to eighty percent for large enterprises and ninety percent of SMEs (on the condition that they have been impacted by the coronavirus).
ABN Amro, ING, Rabobank, Volksbank and Triodos allow smaller enterprises with funding of up to 2.5 million euros a repayment extension of six months, on the condition that the business is healthy at its core. For further information, please contact your bank.
Would you like to know which measures, supports, and tips the municipality in which live and/or work offers? Check out the alphabetical overview below:
Arnhem’s support fund for entrepreneurs SOFA (‘Stichting Ondernemersfonds Arnhem’) has, together with Arnhem municipality, agreed to the establishment of a temporary Emergency Fund. SOFA made 300,000 euros available until 1 July 2020. This emergency fund was extended to 1 October 2020 and increased by 100,000 euros. Finally, SOFA has upped the Emergency Fund again and extended it to 31 December 2020.
→ Read all about SOFA’s Emergency Fund here (in Dutch)
Arnhem municipality is investing nineteen million euros in the local economy, announced its municipal executive on 7 July 2020. The municipality of Arnhem is trying to support businesses and organisations that and individuals who have suffered severely from the coronavirus crisis; it also hopes to sustainably strengthen the city in this fashion.
Many organisations that are active in events, culture, sports, welfare, and healthcare, are anxious about their income and cannot (always) meet their obligations. The municipality of Arnhem will keep providing subsidies in the specified periods, so that parties will not run into liquidity problems.
- Berg en Dal
- Mook en Middelaar
Nijmegen municipality took temporary measures to supplement the national package of measures. The municipality extended these measures to 1 September 2020. Rules were extended, outgoing payments were quickened, extensions were granted on incoming payments, the existing regulations surrounding the Participation Act were implemented in a generous fashion, the allowance for housing costs was upped, the search period was temporarily eliminated for young people requesting a PA welfare payment, no fees/rent for activities that were (partly) cancelled, a relaxed approach to subsidy recipients not rendering an agreed upon performance, a more free approach to the use of specific public funds, a subsidy scheme for coronavirus-related cultural projects, support for temporary alternatives and events, and adjustment of the rent increase of municipal houses and sites.
→ Read all about the temporary measures (in Dutch)
The municipality of Nijmegen has also decided to speed up the use of the 300,000 euros from the budget of the Economic Vision. This money is intended for activities that aim at a quick economic recovery, like hosting a hackaton and a pilot for a House of Skills.
- Renkum (supplementary newsletter)
The Province of Gelderland
The Province of Gelderland has made 10 million euros available for emergency assistance. Nearly 6 million euros went to the municipalities. The other 4 million euros is being distributed via specific schemes, such as:
- Temporary measures theatres and performance venues
- Monuments serving a public function and regional museums
- Municipal support
- Social initiatives (closed)
- Smart Education & Job Market (closed)
- Support measures for entrepreneurs and organisations (closed)
A total of fifty million euros has been made available by the province for the recovery programme that should help Gelderland weather the coronavirus crisis.
The province has a special website on which all information with regard to the coronavirus crisis is compiled. It also features the impact monitor for Gelderland, which is released every two weeks.
Information on the impact of coronavirus on entrepreneurs
Where can entrepreneurs gather more information and to whom should they address their questions?
- The Chamber of Commerce has a special corona service point (in Dutch). The site provides a lot of information, and entrepreneurs can call a special number if they have any questions: 0800-2117. Dutch SME organisation MKB-Nederland and employers’ organisation VNO-NCW are also aiding in this effort.
- The National Government’s website also provides a lot of answers to questions. Read about the full package of coronavirus measures on the National Government’s website here.
- Oost NL’s website contains all information about the coronavirus that is relevant for regional entrepreneurs.
- The same goes for the websites of, among others, MKB-Nederland (in Dutch), and employers’ organisation AWVN.
- ICT Campus, the partnership between government, IT entrepreneurs and educational institutions in Region Foodvalley, has opened a special corona entrepreneurs service point (in Dutch) where entrepreneurs discuss their questions.
- Were you involved in a project of OP Oost? For questions about programmes, projects and/or funding, you can contact OP Oost here (in Dutch).