Government measures in key jurisdictions 4th edition - Flipbook - Page 135
The Netherlands
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On 28 August 2020, the Dutch government announced that the GO-C scheme will continue through 31
December 2020.
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A measure is available for SMEs with a maximum of 250 employees 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, which must
amount to at least EUR 4,000 from June until September. The share of fixed costs in the
turnover is at least EUR 4,000 and of that part a maximum of 50% is compensated. 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 of a minimum of EUR 1,000 and up to a maximum
of EUR 50,000 for the months June, July, August and September. The government has made
available EUR 1.4 billion to support these businesses, who are expected to be employing over
800,000. The compensation is available from 1 June until 30 September 2020. Applications can
be submitted to the Rijksdienst voor Ondernemend Nederland from 30 June 2020. Application
and further eligibility criteria may be found here.
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On 28 August 2020, the Dutch government announced that intends to extend the scheme until
1 July 2021. Consequently, the Dutch government has made an additional EUR 600 million
available for this scheme. The conditions for the TVL will be amended as follows:
- TVL is divided into three intervals of three months. Companies that meet the conditions must submit
a new application to the RVO for each interval;
- Companies must have a minimum of EUR 4,000 in fixed costs in three months (instead of four
months);
- The maximum subsidy will amount to EUR 90,000 (instead of EUR 50,000);
After 1 January 2021, the TVL will be slowly phased out. The limit for decline in turnover will
then be raised gradually. Until 31 December 2020, the current limit of at least 30% will still
apply. As of 1 January 2021 this percentage will rise to 40% and 45% from 1 April until 30 June
2021.
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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 loans provided vary between EUR 50,000 and EUR 2 million. For amounts above
EUR 250,000, 25% co-financing is expected from the shareholders or other investors. A uniform
interest rate of 3% applies. The government has made EUR 100 million available to support the
start-ups and scale ups through this scheme.
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On 29 May 2020, the Dutch government has made EUR 750 million available for SMEs with a
minimum turnover of EUR 50,000 and a financing need of between EUR 10,000 and EUR
50,000. The Dutch government will guarantee 95% of the total amount of the loan granted by
the financier. The loans can be granted by banks and non-banking accredited financiers and
will have an interest rate of maximum 4%. Furthermore, the SMEs have to pay a one-time
premium of 2% as compensation and the bridging loan can be used for a maximum term of
five years. Rabobank, ABN AMRO Bank, ING Bank, de Volksbank, and Triodos Bank have agreed
to offer loans through this scheme.
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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.
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Government measures in key jurisdictions