In this article we discuss:
- Corporate Finance Guarantee (Garantie Ondernemingsfinanciering) (GO)
- Suretyship agriculture (Borgstellingskrediet voor de Landbouw) (BL)
- SME guarantee scheme (Borgstelling MKB Kredieten, BMKB)
- Interest rebate for small entrepreneurs on microcredits “Qredits”
1. Corporate Finance Guarantee (Garantie Ondernemingsfinanciering) (GO)
Under the GO-scheme, the Dutch State – in short – guarantees half of any new funds which banks make available to Dutch Borrowers.
Back in 2009, the Ministry of Economic Affairs and the Dutch banks joined forces to fight the negative consequences of the credit crisis. One of the measures they implemented was the Garantie Ondernemingsfinanciering (GO) (Corporate Finance Guarantee), an arrangement designed for large and medium sized businesses affected by the crisis.
The GO-scheme is still in force and in light of COVID-19, the Dutch government announced to extend the scope of the Corporate Finance Guarantee by letter of 17 March 2020.
The key changes to the existing rules are:
- government budget increases from EUR400m to EUR1.5b;
- the 50% state guarantee on loans up to EUR50m is increased to a 50% state guarantee on loans up to EUR150m; and
- implementation within one week;
Other key characteristics of the arrangement are in short:
- euro loans with a term no longer than 8 years;
- the companies must have substantial business activities in the Netherlands;
- generally only applies to new loans (including…