Cabinet comes up with expanded aid after new corona measures

On Nov. 17, the Cabinet announced an extension of financial support for business owners to compensate for the new corona measures that went into effect on Nov. 13. The previously announced Vaste Lasten Nachtsluiting (VLN) scheme will be replaced by the Tegemoetkoming Vaste Lasten (TVL). Through this scheme, the government intends to support affected business owners with the payment of their fixed operating costs in the fourth quarter of 2021. Thus, government support is back soon after the NOW scheme was discontinued as of Oct. 1.

By the way, (other) support has also been created for the event, cultural and sports sectors.

The TVL arrangement

The new scheme is aimed at business owners that expect to lose at least 30% turnover in the fourth quarter of 2021 compared to the first quarter of 2020 or the fourth quarter of 2019. This is a stricter requirement, than applied to the NOW scheme, where 20% turnover loss was sufficient. As business owner , you can choose which quarter the application should be assessed based on. Companies that registered with the Chamber of Commerce after September 30, 2019, but before July 1, 2020, can choose from the first full quarter after registration or the third quarter of 2020. TVL's grant rate is 85% and the maximum grant amount over this quarter is €250,000.00.

A number of additional conditions - in addition to loss of turnover of at least 30% in the fourth quarter - must be met before you are entitled to the subsidy as business owner . The company must have been registered with the Chamber of Commerce by June 30, 2020 and have at least one branch in the Netherlands. The establishment must have a separate front door or entrance from the home address. Exceptions to the establishment requirement include most eateries, cafes, supermarkets and stores. Moreover, the business for which subsidy is sought must not have received more than €1.8 million in public support for fixed costs between March 2020 and December 31, 2021 due to the state aid limit. If the state aid limit comes into view over that period then only the subsidy amount will be paid until the total amount of €1.8 million is reached.

From when can you submit a TVL application?

The scheme is an unexpected modification of the subsidy scheme, which has yet to be submitted to the European Commission. This may delay the intended opening of the scheme. The goal is to open the scheme in early December 2021.

So it is not yet known exactly when you will be able to apply for the TLV scheme, but we will keep you informed about relevant developments. If you have any questions, please contact us.