Covid-19 Dutch governmental measures for businesses - UPDATE

20 April 2020

The Dutch government has implemented several measures to provide financial assistance to Dutch companies during this global corona pandemic.

On 27 March 2020, we already prepared a brief overview of the most important measures taken so far.

As in the past few weeks the Dutch government provided further elaboration on certain measures and also new measures were announced, we prepared an update which can be found here and hereunder. Should you have any questions or in case you would like us to assist you with anything, please do not hesitate to contact us.

As governments need to act fast during the current corona pandemic, we continually monitor the development of measures as taken by the Dutch government to support companies in this regard. Hereunder, we have set out the main developments of last month.

Temporary Emergency Bridging Measure for Sustained Employment

As set out in our previous overview, the temporary emergency measure (Tijdelijke Noodmaatregel Overbrugging voor Werkbehoud, or ‘NOW-regulation’) concerns a compensation for employers in the wage costs amounting to a maximum of 90% of the wage sum. More details in connection with this measure have recently been announced.

As from 6 April 2020, employers can apply for the NOW-regulation. The application period runs until 31 May 2020. The amount of the allowance in wage costs depends on the drop in turnover and amounts to a maximum of 90% of the wage costs.

For example:

  • If 100% of the turnover is lost, the allowance amounts to 90% of the wage costs of an employer;
  • If 50% of the turnover is lost, the allowance amounts to 45% of the wage costs of an employer;
  • If 25% of the turnover is lost, the allowance amounts to 22.5% of the wage costs of an employer.

Based on the application of an employer, the UWV (Employee Insurance Agency) provides companies with an advance payment of 80% of the expected allowance. The actual drop in turnover will be determined in retrospect. If needed, corrections can then take place.

Extension SME credit guarantee scheme (BMKB)

For a description of this measure, we kindly refer back to our overview of 17 March 2020. The guarantee budget in this regard has now been increased from EUR 765 million to EUR 1.5 billion. The premium to be paid is lowered from 3.9% towards 2%, making it cheaper for companies to borrow money.

Extension of the Business loan guarantee scheme (GO)

For a description of this measure, we kindly refer back to our overview of 17 March 2020. The amount that the government makes available for this measure, has now been increased with EUR 8.5 billion to EUR 10 billion. The guarantee for large companies can now be 80% and for SME’s 90%, where previously capital providers could only receive a 50% guarantee from the government in this regard.

Compensation for companies in hardest hit sectors

The details of the Compensation for Entrepreneurs in Affected Sectors COVID-19  (‘TOGS’) have recently been announced. Qualifying entrepreneurs who apply receive an one-off tax free amount of EUR 4,000. To qualify, several requirements need to be met, such as not being insolvent or having applied for a suspension of payments and expecting a loss in turnover in the period from 16 March 2020 up to and including 15 June 2020 of at least EUR 4,000.

As this compensation is intended for a certain type of entrepreneurs who suffer damage because of the closure of their business by order of the authorities, the restriction of gatherings and/or the negative travel advice, one of the main requirements is that their business is, regarding the main activity, registered (as from the reference date 15 March 2020) under a certain ‘SBI-code’. This includes for example entrepreneurs in the sectors wholesale, retail, transport, tourism, job placement services, hospitality, welness and sports. The government has a search tool to check whether a company’s SBI-code qualifies for this compensation.

Applications must take place online at the Netherlands Enterprise Agency (‘RVO’), which aims to handle applications within 1 week after which the compensation is paid out. Entrepreneurs can apply until Friday 26 June 2020. A check on the applications takes place in retrospect. When it appears that the compensation was granted wrongfully, the compensation as paid shall be adjusted or reclaimed. This can be done until 5 years after payment of the compensation.

Extension of export credit insurance facility

An export credit insurance facility already existed for companies that export capital goods or services from the Netherlands. They can have their transactions insured by the Dutch government through export insurance, which is intended for large transactions or transactions with long turnaround times or to high-risk countries for which no coverage options are available on the market.

To keep international trade going as much as possible, the Dutch government extended as from 26 March 2020 the possibilities for export credit insurances to prevent that companies experience severe payment risks, run into additional liquidity problems or need to put international projects on hold.

These extensions concern, in short, the following. It will be possible for companies to get a short-term guarantee with a runtime of less than 2 years (instead of a runtime of at least 2 years as earlier applicable). Furthermore, the possibilities for domestic coverage are extended and coverage for more countries than before will be possible. Also procedures are accelerated, a higher percentage of working capital can be covered and the upfront deposit requirement of 5% is cancelled.

Application for the insurance takes place at Atradius Dutch State Business and through the calculation tool you can find out whether your company is eligible.


As from the 4th week of April, startups and scale-ups will be able to apply for credit at the Regional Development Companies (ROMs). In this regard, the government makes available EUR 100 million. The terms and conditions of this scheme will be announced as soon as possible, however, it will concern loans between EUR 50,000 and EUR 2 million. Furthermore, the government emphasized that it supports companies that are, in essence, healthy and that the loans are strictly intended as a temporary bridging.

Supplier credit insurance guaranteed by the government

The Dutch government will guarantee supplier credit insurances for a total of EUR 12 billion.  This is done because a crisis such as the corona pandemic increases the risk of payment defaults, resulting in insurers lowering the limits of credit insurances or even not insuring companies at all that are hit hard, such as stores and the hospitality industry. To ensure continued trade and confidence in supplier credit insurances, the government will take over the risk from credit insurers for an amount of EUR 12 billion.

This governmental guarantee has retroactive effect as from January until the end of 2020. The guarantee applies to the first EUR 12 billion of the in total EUR 44 billion in credit insurances that the five players on the Dutch market have currently outstanding. The premiums that companies pay in this regard (approximately EUR 200 million) will go to the government during the whole year.

You can find this information also in this document that is prepared by Pellicaan Advocaten N.V. on the basis of the currently available  information and serves general information purposes only. For further details or in case you would like us to assist you with anything, please do not hesitate to contact us.