The first tranche of 100 million euro in bridging funding will be made available by the Dutch government as part of a broader approach for startups, scaleups and innovative growth companies. Techleap.nl welcomes the government's signal to support startups and scaleups during the COVID-19 crisis. As part of the measures, there will also be a postponement of the abolition of the guarantee scheme and non-bank financiers can now also accredit themselves to finance their existing clients under the BMKB's Corona module.
Since the very first signs of trouble from startups and scaleups and the published results of the Techleap.nl impact report, many parties have been working on a range of support measures. The letter to the Cabinet provides an initial insight into the breadth and depth of the measures. We are working together with the Ministry of Economic Affairs and Climate Policy, ROMs, InvestNL, NVP, investors and startups in order to be able to quickly present an integrated package.
A new support package is necessary because startups and scaleups often make use of risk financing. For example, they rarely have bank loans and often do not yet make a profit and have low turnover. So they cannot claim all the measures that are based on bank financing and sales tax reduction. They are also financed with a view to future growth and follow-up investments, which are now being postponed.
The aim is to make it possible for companies to apply from April 20th in relation to the new measures. In the coming period, we will communicate extensively about criteria and application procedure. And we thank everyone for their cooperation and trust. In short: €100M has been made available for bridge loans and will be distributed via the Regional Development Funds ("ROM's). The loans vary between the €50.000 and €2M.
Nils Beers, CEO Techleap.nl: "With this first confirmation of a broader approach the government shows its taking startups and scaleups struggles seriously. Much more though needs to be done and we look forward to working together on further solutions to help the startup ecosystem through the crisis. Continuing our work with the ROMs, InvestNL, the Ministry of Economic Affairs and Climate, private investors and other stakeholders.”
Some of the components that are part of the broader approach and that are already mentioned are: Fund for bridging loans for non-bank companies, Qredits provides loans of up to €250,000 to small companies, suspend phasing out of the Growth Facility (GF) by 1 year until 1 July 2021 and open the BMKB core module for non-bank financiers.
You can read more about this in the letter from the Cabinet.
We will keep you informed of further developments in the coming period.