Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 95
The Netherlands
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A measure is available for SMEs that were established in the Netherlands before
15 March 2020 and are active in sectors which are affected by the government
measures. SMEs can apply for a tax-free allowance to pay fixed costs. Depending on
the size of the SME, the level of the fixed costs and the degree of loss of turnover (at
least 30%), companies can receive a contribution up to a maximum of EUR 20,000
for the months June, July, and August. The government has made available EUR 1
billion to support these businesses, who are expected to be employing over 800,000.
Application and further eligibility criteria may be found here.
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Bridge financing is available to start-ups and scale-ups that have been affected
by the COVID-19 Outbreak. Since these companies usually do not have banking
relationships, the credit will be provided by Regional Development Agencies
(Regionale Ontwikkelingsmaatschappijen, ROM). The government has made EUR
100 million available to support the start-ups and scale ups through this scheme. It is
expected that applications can be made from the fourth week of April 2020.
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A measure is available for agricultural SMEs that are established in the Netherlands
and have substantial activities in the Netherlands. The Dutch government has decided
to temporarily amend the scheme to provide more financial leeway for agricultural
SMEs that run into difficulties and need working capital and/or liquidity.
The temporary extension is aimed at regular agricultural loans and means that the
State guarantees 70% of the total amount of the loan granted by the financier. This
temporary extension can be used by agricultural SMEs to obtain a bridging loan or an
increase in current account credit from a lender for a maximum term of two years.
On 10 April 2020, the measure has also been extended to include fisheries and
aquaculture companies. Companies within these sectors can make use of the scheme
retroactively per 18 March 2020.
Furthermore, the premium for the government guarantee has been decreased
from 3% to 1.5% and from 1% to 0.5% for starters. The eligible companies make
an application to the accredited financier which is usually a bank. The accredited
financiers can submit an application to Rijksdienst voor Ondernemend Nederland.
You can find the eligibility criteria and the list of accredited financiers here.
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The government announced to introduce a scheme with a EUR 650 million budget for
the compensation of damages suffered by specific agricultural sectors as a result of
the COVID-19 outbreak.
The ornamental horticulture sector and specific sections of food horticulture will be
compensated for up to 70% of decrease in turnover in March, April and May 2020.
The benchmark is the average turnover in the same period in three preceding years.
Chip potato growers will receive compensation in relation to the quantity of potatoes
they still have in storage. The compensation applies to potatoes that can no longer be
processed into chips for this season. The total compensation will amount to 40 percent
of the average market value of the potatoes over the period from September 2019 up
until February 2020. A total of EUR 50 million has been made available to this end.
Further details on the measure and application procedures may be found here and
here.
Government measures in key jurisdictions
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