After making several loans available to entrepreneurs with a banking relationship, the Dutch government now also offers support for startups that have yet to establish such a relationship. The Dutch Regional Development Agencies (ROMs) offer the Corona Bridging Loan (COL). The COL comprises between €50,000 and €2 million, at an interest rate of 3% and with a term of 3 years. Submission is possible as from April 29, 2020.
- A one-year liquidity statement must be available, showing that the financing need is due to the corona crisis.
- There are 3 categories with different additional conditions (€50-250,000; €250-500,000; and €500-2,000,000).
- Funding is granted on a one-off basis and there may be no cumulation of aid.
- Standard legal documentation must be adhered to.
Who Can Apply?
- Startups, scale-ups, and innovative SMEs. These are companies with predominantly external capital that are not financed by a bank.
- The COL is also open to SMEs that have financed their growth in recent years with internal equity.
- Companies working in retail, hospitality, and small business services are not eligible, nor are independent entrepreneurs.
- Investors may assist in the application, but cannot make the submission themselves.
- The loan comprises between €50,000 and €2 million.
- For amounts that exceed €250,000, 25% co-financing is expected from the shareholders or other investors. These may also be new investors. The investment must meet the same conditions as the COL (including the interest rate of 3%).
- The COL may not be used to repay existing loans.
- For amounts between €2-5 million, you may apply for Invest-NL’s Temporary Bridging Loan Programme innovative Start- and Scale-ups (TOPSS).
- It is not possible to negotiate about the terms and conditions of the bridging loan.
- The bridging loan must be signed no later than December 31, 2020.
- There are no specific evaluation criteria other than those described above.