Support measures for business owners broadened

The Cabinet has announced that support measures for business owners will be widened again. This is in response to the harsh lockdown that has been in place since Nov. 19. There was only a short time between the announcement and the implementation of this lockdown. business owners had little chance to adjust their business operations. Therefore, the Cabinet finds it necessary to come up with additional economic support for business owners and working people. To this end, the Cabinet is coming up with a broader support package than last winter.

Emergency Measure Bridging Employment (NOW).

Currently, there is an 80% loss of turnover for which business owners can receive compensation for labor costs through the NOW. That will be increased to 90%. This measure will apply for the fourth quarter of 2021 and the first quarter of 2021. At this point, the Cabinet notes that grant applications for the current quarter are already underway. Therefore, advances will be based on the 80% applicable for this quarter. The final determination will be based on 90% revenue loss.

Allowance for Fixed Lets (TVL).

Last month, we reported to you about the expansion of the TVL. At that time, the turnover loss threshold was set at 30%. This threshold will be lowered to 20% once for the fourth quarter of 2021. This means that at 20% turnover loss, you can already claim TVL. The turnover loss threshold in the first quarter will remain 30%.

business owners with revenue losses between 20% and 30% can immediately apply for TVL in the current (fourth) quarter. However, applications will be held until the European Commission has implemented these changes. You can apply for TVL through the Rijksdienst voor Ondernemend Nederland ( RVO). Before you apply, you can first make a trial calculation via the RVO's advice tool.

There will be no stock allowance for the hospitality and retail industries in addition to the TVL. The cabinet finds this difficult to implement. In addition, the cabinet feels that stores and the hospitality industry are now better prepared for takeout options.

Temporary bridging arrangement independent business owners (Tozo)

Self-employed business owners could take out a Tozo loan for working capital. Those business owners had to start repaying that loan by Jan. 1, 2022. The start of mandatory repayment has now been moved to July 1, 2022. This applies to all Tozo loans. The time of issue is irrelevant here.

The maturity of all Tozo loans will be extended by one year, from 5 to 6 years. This is the period within which all Tozo loans must be repaid. This period does run from the time of granting.

For all Tozo loans, no interest is payable for the months January 2022 through July 2022.

In conclusion

The new support measures cushion some of the financial impact of the new lockdown. However, support packages distort the economy and are a heavy burden on public finances. Several research institutes, including the Dutch Central Bank, have also warned about this. The cabinet is therefore considering a long-term vision for the design of the support package. This should include a better balance between business risk and government support. Preventing closures is "the best form of support," according to the cabinet. Therefore, the cabinet is also looking at sustainable use of basic measures. The cabinet wants to finish this vision for the approach by March 2022 at the latest. As soon as more is known about this, we will of course notify you. 

If you have any questions about the NOW, TVL or other measures, please feel free to contact one of our specialists.