Corona: bridging loans for small companies (KKC)

Do you own a small company and are you in need of a relatively small loan of between €10,000 and €50,000 as a result of the corona crisis? You may be eligible for a bridging loan facility. This is called Small credits guarantee for SMEs (Kleine Kredieten Corona garantieregeling, KKC). The Dutch government will stand as guarantor for 95% of these bridging loans.

Who can apply?

  • You own a micro, small or medium sized business.
  • You were sufficiently profitable before the corona crisis.
  • You were registered in the Netherlands Chamber of Commerce Commercial Register (KVK Handelsregister) before 1 January 2019.
  • KKC is a loan of €10,000 up to €50,000. The term of the loan is at most 5 years and the interest rate is maximum 4%.
  • You pay a one-time premium of 2% to the State.

Loans that have been granted from 7 May 2020 may be refinanced under the conditions of the KKC.

How to apply?

Entrepreneurs do not apply for the Small Credits for Corona guarantee (KKC) themselves. You can apply for a loan from your credit supplier, a bank or other funder affiliated with this measure. Funders or banks that participate in the extended SME credit guarantee scheme (BMKB-C) can also offer the KKC. Other funders can apply for accreditation to the Netherlands Enterprise Agency

SME credit guarantee scheme (BMKB)

If you have a business in the Netherlands and employ no more than 250 workers (you have an SME), you may be eligible for a guarantee for part of a loan through the SME credit guarantee scheme (BMKB). The Ministry of Economic Affairs and Climate Policy stands as guarantor. This will enable you to borrow more than would otherwise be possible based on your collateral.

The bank and other possible funders are covered by the government’s SME credit guarantee scheme.

Corona crisis: Extension SME credit guarantee scheme

The SME credit guarantee scheme (BMKB) has been extended (in Dutch) to deal with the economic consequences of the corona crisis:

  • Businesses can use the BMKB for a bridging credit, or to increase their overdraft (how much they are allowed to be in the red) on their current account.
  • The credit guarantee has been increased from 50% to 75%. This enables banks to extend credit more easily and quickly, and businesses to lend more money faster.
  • The BMKB interest percentage is lowered from 3.9% to 2% for a maximum period of 8 quarters and 3% for a period of 9 to 16 quarters.
  • The BMKB guarantee budget is increased from €765 million to €1.5 billion.
  • Accreditation becomes available to financiers other than banks, to enable them to finance their clients using this extended BMKB scheme.

Dutch Caribbean

This measure is also open to agricultural entrepreneurs, including the fisheries and aquaculture sectors, in the Dutch Caribbean.

In the Netherlands agricultural and horticultural entrepreneurs and entrepreneurs in the fisheries and aquaculture sectors can apply to the – also extended – Credit Guarantee Scheme for Agriculture (BL).

PFAS and nitrogen

The government offers extra support within the BMKB scheme to SMEs whose turnover relies for at least 20% on activities affected by the PFAS and nitrogen developments (in Dutch). The government can be guarantor for a larger credit sum. You can make use of this extra support until and including 31 December 2020.

When do you qualify?

To be eligible for the SME credit guarantee scheme, you must fulfil various conditions, including the following:

  • Your business is established in the Netherlands, Bonaire, Saba or St. Eustatius.
  • Your business has up to 250 FTE employees.
  • Your business has an annual revenue of up to €50 million or has a balance sheet total of up to €43 million.
  • Your company has been established for over 3 years.

The scheme offers extra opportunities for innovative companies and startups (in Dutch). It is also open to entrepreneurs who want to start businesses in Bonaire, Saba and St. Eustatius.

How to apply?

Entrepreneurs do not apply for the SME Credit Guarantee themselves. They simply apply for a loan from one of the participating banks or other funders (in Dutch), which in turn submits an application for the SME credit guarantee from the Netherlands Enterprise Agency (RVO). A special webportal (partly in Dutch) is available for funders with all relevant information.

Business loan guarantee scheme (GO)

The Business loan guarantee scheme (Garantie Ondernemingsfinanciering, GO) makes it easier for large and medium-sized companies in the Netherlands to borrow substantial amounts of money. Capital providers receive a 50% guarantee from the government. The term for the Business loan guarantee scheme (in Dutch) is maximum 8 years.

Corona crisis: temporary extension of GO

The Business loan guarantee scheme has been extended (GO) to help businesses deal with the corona crisis. The amount for which the government stands as guarantor has been increased to €150 million. The maximum guarantee percentage has been increased from 50% to 80% for large companies (public limited companies, nv) and to 90% for SMEs. The GO guarantee ceiling has been raised to €10 billion.

When do you qualify?

To qualify for the GO Business loan guarantee scheme (in Dutch), the following criteria must be met:

  • Your company has its registered office in the Netherlands. The commercial activities are conducted primarily in the Netherlands.
  • You have a healthy company.
  • Your business has reasonable profitability and continuity prospects.
  • The financing qualifies as Fresh Money (in Dutch).
  • In the last 12 months, no excessive capital withdrawals from your company have taken place.
  • You are only requesting GO financing for your own company activities.

How to apply for the GO-scheme?

You don’t apply for the GO-scheme yourself. Your financier can apply for you if they participate in the GO-scheme (in Dutch). The financier submits the application to the Netherlands Enterprise Agency (RVO).

Financial support for self-employed professionals (Bbz)
Corona crisis: extra support for self-employed professionals

There is an extra, temporary Bbz benefit to support self-employed professionals who have gotten into financial difficulties due to the corona crisis. This measure is called the Temporary bridging measure for self-employed professionals (Tozo) Read more about the terms and application process for the Tozo.

When are you eligible for Bbz?

Different groups of freelancers/self-employed persons are eligible:

  • those starting a company, who receive: welfare (in Dutch), unemployment benefit or incapacity benefit;
  • established entrepreneurs who are experiencing temporary financial problems;
  • entrepreneurs who are 55 or older with a non-viable company;
  • entrepreneurs who wish to end their company.
Changes in support

The government has made some changes in financial support for self-employed professionals and freelancers:

  • The scheme for over-55-year-olds is to be gradually scaled down from 1 January 2020;
  • If you are a skipper on an inland waters and you need financial support, you will need to apply to the municipality where you live rather than the centralised administrative body of municipalities, which used to be the case;
  • As of 2020, this financial support is no longer awarded retrospectively.

These changes do not affect entrepreneurs who currently use this support scheme.

When do you qualify?

Whether you are eligible for financial support as a freelancer/self-employed professional depends on your situation. As does the type of support you require. There are different requirements for each situation. For instance your personal capital determines whether your company capital is a grant or a loan (which you have to pay interest on). It is important to check which requirements apply to your situation. Your local municipality can help you with this.

How to apply?

Submit your application to your local municipal authority.

Compensation

Under the Tax Plan 2019, freelancers/self-employed professionals who received financial support between 2014 and 2016 are eligible for compensation, because they were required to add the financial support as a grant to their income in their income tax returns. As a result other benefits were withdrawn. You can apply for this compensation until 1 July 2020 with the Dutch Tax and Customs Administration (in Dutch).

Microcredit

If you are a starting or existing business owner in the Netherlands and need credit, you may be eligible for a microcredit. Microcredit is a business loan up to €50,000. You can also apply for a SME loan (MKB-krediet), which is a €50,000 to €250,000 business loan.

Please note: Due to the coronavirus outbreak, entrepreneurs who have a loan from microcredit provider Qredits do not have to repay their loan for a period of 6 months. During this period, the interest will be reduced to 2%. You can ask Qredits for an extension (in Dutch).

When do you qualify?
  • You are a starting or existing business owner or you take over a business.
  • Your current requirement for credit does not exceed €50,000.
  • You have a solid (business) plan.
  • You conduct your business activities in the Netherland
How to apply?

If you do not yet have a business plan, Qredits can assist you with coaching and various business tools. If you already have a business plan, you can submit your application for a microcredit (in Dutch) directly to Qredits Microfinanciering Nederland