The cabinet on Tuesday night presented an emergency package for entrepreneurs affected by the economic consequences of the coronavirus. 10 to 20 billion euros will be allocated for the next three months to keep businesses and the self-employed afloat.
An overview:
Wages continue to be paid to employees who are at home due to corona
Entrepreneurs who expect at least 20 per cent less turnover can apply to benefits agency UWV for up to working-time reduction. If approved, the government will pay a maximum of 90 per cent of salary, which was 75 per cent. The condition is that companies do not lay people off and continue to pay the rest of the wages themselves.
It also applies to employees on flexible contracts and on-call workers.
Entrepreneurs hit hard get €4,000
Entrepreneurs who are directly hit hard by the corona measures and see their turnover evaporate (almost) completely will receive EUR 4,000 as emergency relief for the next three months. These include the hospitality, cultural and travel sectors. But also sectors that are in trouble because of the 1.5-metre distance requirement, such as beauty salons and hairdressers.
However, the business must be outside the owner's home. The exact conditions have yet to be worked out.
Self-employed get three-month allowance
Self-employed persons without staff (self-employed) can apply to their municipality for a benefit for three months so that they have an income of at least the social assistance level. This is a grant.
There is no consideration of the applicant's financial situation, so no so-called asset or partner test.
Although an accelerated procedure is being set up for it, the government warns that this measure still needs to be legally worked out, so self-employed people will have to be patient before they can apply for this assistance scheme.
Deferring payment of taxes and reducing fines
Entrepreneurs in trouble due to coronavirus may pay their taxes later. As soon as this is granted, collection by the Tax Administration is stopped immediately. The taxes involved are income, corporate, payroll and sales tax (VAT).
The recovery interest you normally have to pay after the payment deadline has passed goes from 4 per cent to almost 0 per cent. This applies to all tax debts. Tax interest, which you have to pay when the payment term of a tax assessment has passed, is also going to almost 0 per cent.
Entrepreneurs should be able to borrow money more easily
The government is allocating more money for loans guaranteed by the state. It will initially go for loans for small and medium-sized enterprises (SMEs) and large companies using the Guarantee Entrepreneur Financing Scheme (abbreviated as GO).
This instrument is normally intended for loans between €1.5 million and €50 million. That ceiling is temporarily increased to a maximum of €150 million.
The government guarantees 50 per cent of these loans, making banks more inclined to extend credit to the companies. The government is allocating €1.5 billion for this.
Small business owners may repay later and get interest rate discount
There will also be favourable loan conditions for small entrepreneurs. This involves the government's microcredit provider Qredits, aimed at small and start-up entrepreneurs who are already struggling to get financing.
Due to the corona crisis, entrepreneurs will get a repayment delay for the next six months and the interest rate will be automatically reduced to 2 per cent. The government is setting aside €6 million for this.
