The government is making 750 million euros available for bridge loans for small businesses in the micro-, medium- and small business sector. These bridge loans are available to small businesses with a relatively small financing need of between €10,000 and €50,000. Financiers provide the Small Credit Coronavirus guarantee scheme (KKC).
The state is the guarantor for 713 million euros of the available 750 million euros.
KKC is just one of the extra measures to help entrepreneurs with the economic consequences of the coronavirus. The specifics of the bridge loan are still being decided. Once the European Commission gives approval, entrepreneurs can apply for it via their financiers. The aim is to have the bridge loan ready by the middle of May.
KKC for small businesses: micro-, medium and small businesses
With the KKC scheme, entrepreneurs can request a loan of between €10,000 to €50,000. Because the state is the guarantor for a large percentage of the available amount, 95%, a larger group of entrepreneurs has access to financing. Financiers still bear 5% of the risk. Because of this, only businesses which are healthy and have enough repayment capacity are eligible for this loan. This means thousands of entrepreneurs in the Netherlands are eligible.
Banks provide this type of loan with a maximum interest rate of 4% and a maximum duration of 5 years. Entrepreneurs must also pay a one-off premium of 2% to the state as compensation. The loan is open to entrepreneurs with a turnover of €50,000 or more. Their businesses must have been profitable before the coronavirus crisis and registered at the Dutch Chamber of Commerce (KVK) since 1 January 2019.
How can entrepreneurs apply for the KKC?
Entrepreneurs can apply for KKC via their bank or credit provider. The banks: Rabobank, ABN AMRO, ING, de Volksbank and Triodos have already committed to providing loans via the KKC scheme. Financiers accredited for the Credit Guarantee for SMEs (BMKB) can also offer the KKC. Other financiers who want to offer the KKC can become accredited via the BMKB.