The Cabinet clarified two new (credit) arrangements in connection with the corona crisis.
Small Credit Corona Guarantee Scheme (KKC)
The KKC is intended for entrepreneurs with a credit application of EUR 10,000 to EUR 50,000.
The loan is open to entrepreneurs:
- with a turnover starting at EUR 50,000 per year,
- who were sufficiently profitable prior to the corona crisis, and
- who, on 1 January 2019, were registered at the Dutch Chamber of Commerce.
The government guarantees 95% of these loans to entrepreneurs. The lender may pass on a maximum of 4% costs to the entrepreneur. In addition, the entrepreneur must pay an one-off premium of 2% to the State.
For the time being, only banks and financiers accredited for the BMKB-C scheme, are allowed to offer these loans. Other lenders can report to the Rijksdienst voor Ondernemend Nederland (RVO.nl).
This scheme has yet to be approved by the European Commission.
Corona-Oververbruggingslening (COL)
The COL is intended for entrepreneurs with a credit application between EUR 50,000 and EUR 2,000,000. This facility is open to start-ups, scale-ups, innovative small and medium-sized entreprises (SMEs) and SMEs without a banking relationship.
These enterprises that, due to the corona crisis, find it difficult to obtain a bridging loan from a bank can apply at the Regional Development Agencies (ROMs) for a Corona-bridging Loan (COL). The loans granted vary between EUR 50,000 and EUR 2,000,000 and have a fixed interest rate of 3%.
If an entrepreneur wishes to borrow more than EUR 250,000, a co-financing of 25% is expected from the shareholders.
