The Dutch government introduced several measures to alleviate the Corona crisis’ consequences as much as possible for entrepreneurs and freelancers. Below you will find a short recap of all the measures.
Temporary financial support
Although it is not entirely clear yet, the scheme will come into effect retroactively per March 1, 2020. The support can be given as income support, to a maximum of €1,500,- (net), that does not have to be repaid, for a maximum of 3 months. Alternatively, you can apply for a loan for business capital amounting to €10,157,-. This will have to be repaid, but it is possible to request for an extension of the deadline for payment and the interest is lower. It can be applied for at the municipality where you are registered.
The requirements are as follows:
- you are an established self-employed professional
- You are between 18 and retirement age
- your nationality is Dutch or equaled
- you practice your business or profession in the Netherlands
- you are registered in the Commercial Register (Handelsregister)
- you started your company before 1 January 2020
- you meet the hours criterion (a minimum of 1,225 hours per year are put into your company or professional activities)
Director/major shareholders of a BV are eligible for the emergency support as well, provided they fulfill the hours criterion mentioned above; have full control of the company and are subject to the financial risk. They would also need to substantiate that the BV is not able pay their salary.
If you have a residence permit as an entrepreneur you can apply for temporary financial support (TOZO) without jeopardizing your legal residence. If you are a national of the European Union or if you have any other non-permanent residence permit, an application for temporary financial support could jeopardize your legal residence, but you are protected by European legislation and case law. Read more in our news article here.
SME credit guarantee scheme / microcredit
The credit guarantee scheme has been extended. The Ministry of Economic Affairs will act as guarantor for up to 75%. These measures enable you to borrow more than is normally possible. This may be used as a bridge loan or to increase the amount on your current account.
- The business is established in the Netherlands, Bonaire, Saba or St. Eustatius.
- The business has up to 250 FTE employees.
- The business has an annual revenue of up to €50 million or has a balance sheet total of up to €43 million.
- The company has been established for over 3 years.
Furthermore, business owners who received a business loan from Qredits, will not have to repay their loan for a period of 6 months, during which interests will be reduced to 2%.
According to our information, this guarantee scheme for loans will not be considered welfare*. It is rather a loan. As far as we can judge now, it would therefore not jeopardize your legal residence if you reside here as a freelancer, Union citizen or other non-permanent residency permit as the money that will be borrowed will eventually have to be paid back.
Lastly, the Ministry of Economic Affairs announced that entrepreneurs in hospitality, travel and event organization will be compensated with a fixed compensation of €4,000,-. The actual terms are yet to be announced. An application for such a compensation might be considered as welfare, so this might jeopardize your legal residence too.
*We will update this information according to the latest developments.