Government measures in key jurisdictions 3rd edition final - Flipbook - Page 10
Pieter Van den Broeck | Pieter.VandenBroeck@monardlaw.be | +32 (0)3/286 79 40
Ava Tu | ava.tu@monardlaw.be | +32 (0)2/234 67 10
Loans and
financial
support
Has the
government put in
place any new
bank funding
schemes?
•
In Belgium, the federal and regional governments have put in place numerous financial support
measures. Such measures include one-off compensation to enterprises which are required to
temporarily close down (such as the hotels and restaurants), deferral payment of bank loans,
government guarantees, and other measures oriented to support specific sectors or SMEs. Since
the semi-lockdown has been coming to an end, there have been several extra “re-launch”
grants provided for enterprises.
•
At the federal level, the federal government decided to allow a deferral of payment for existing
credits, including mortgages for households and corporate loans for viable non-financial
enterprises, SMEs, self-employed persons and non-profit organizations. The deferral can be
requested for a maximum period of 6 months for payments due (ending on 31 October 2020). In
addition, in respect of new loans granted between 1 April 2020 and 30 September 2020 for a
maximum term of one year, the federal government provides guarantees and undertakes sharing of
losses with the financial sector. For more details on this topic, please refer to our Corona Desk
website.
•
At the regional level, in Flanders, the coverage of PMV (Flemish corona crisis guarantee) has been
extended. PMV can now also grant medium-term subordinated loans to healthy SMEs for a term of 3
years. The repayment of following loans: start-up loans ‘startlening’, the so-called ‘Co-financiering’ and
‘Co-financiering +’ are deferred for 6 months. In addition, enterprises with a government grant can also
request extension of deadlines with VLAIO (the Flanders Innovation and Entrepreneurship).
•
In the Brussels-Capital Region, the enterprises can request loans with reduced interest rate from Finance
and Invest Brussels. Emergency loan start-up investment fund can provide loans for cultural and creative
enterprises. The Brussels’ microcredit has been strengthened in order to boost cash-flow in general
under the project “Lening BRUSOC Recover”. In addition, Brussels Waarborgfonds (Brussels guarantee
fund) also can provide guarantees on bank loans.
•
In the Walloon Region, there are also similar support measures provided by SRIW, SOWALFIN and
Groep SOGEPA (guarantees, loans anddeferrals).
•
Employment
What financial
support is
the government
providing to
businesses and to
individuals on
employment
issues?
10
Following the easing of the quarantine rules, many employees are now able to return to work.
Teleworking and/or social distancing remain nonetheless highly recommended. If both are
practically impossible, the employer is obliged to foresee adequate preventive measures, such as
disinfectants, masks and gloves.
•
Some companies, such as nightclubs remain closed. In such cases, employees can apply for
“temporary unemployment”, (“tijdelijke werkloosheid”, “chômage temporaire”). Temporary
unemployment can also be invoked, for instance, if the company suddenly has insufficient work for
its employees, if an employee is not able to find childcare for his/her children, or if an employee
has been put in quarantine abroad. In addition to a very flexible scope of application, the Belgian
authorities have also significantly eased the application procedure. The employee will receive an
allowance of 70% of his average salary (capped), and the government will grant a supplement of
5.63 euro per day.
•
Self-employed persons can rely on a “bridging right” (“overbruggingsrecht”, “droit passerelle”),
which has also been made more flexible in the context of the Covid-19 crisis. Are eligible: selfemployed who are obliged to cease their activities (in whole or in part) or self-employed who are
practically forced to cease their activities for at least 7 consecutive calendar days. The monthly
allowance amounts to 1,291.69 euro without family charge and 1,614.10 euro with family charge.
Government measures in key jurisdictions