Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure BE-2020-17/1214 – Updated – measures in Belgium
Country |
Belgium
, applies regionally
|
Time period | Temporary, 24 April 2020 – 01 March 2021 |
Context | COVID-19 |
Type | Legislations or other statutory regulations |
Category |
Supporting businesses to stay afloat
– Access to finance |
Author | Dries Van Herreweghe (Katholieke Universiteit Leuven) and Eurofound |
Measure added | 02 October 2020 (updated 30 April 2021) |
Tenants who have difficulty paying the commercial lease due to liquidity problems can apply for a commercial lease loan with the Flemish government, whereby the regional governments (Flanders and Brussels) advances a maximum of two months rent, on condition that the landlord waives one or two months rent. The measure has reduced financial pressure on businesses that are faced with reduced income because of the COVID-19 crisis but are still faced with significant fixed costs.
The Flemish government will advance a maximum of two rental periods, provided that the landlord waives one or two months' rent. This voluntary agreement with the landlord is an interesting option: if the landlord waives two months' rent, the landlord is guaranteed payment of the rent for the next two months.
Payment is made directly to the landlord, while the tenant takes out the loan. The maximum amount for the loan has been increased to €35,000. The repayment of capital and interest only starts after six months and must be repaid 24 months after the loan has been granted. There is an interest rate of 2%.
The Brussels regional government has implemented a quasi identical measure as well. The tenant may request an advance finance payment from Brussels for the payment of a maximum of two months rent. Upon approval the Brussels regional government will pay the amount to the owner of the property. This advance is repayable (up to a maximum of €25,000) with an exemption from repayment during the first six months.
The measure has been extended to the events and entertainment sectors as well, as they are both sectors that have been struck very hard.
The following updates to this measure have been made after it came into effect.
04 January 2021 |
The measure was extended on 4 January 2021 and can be requested until the 1 March 2021.
|
There is no data available yet on the uptake of the measure with business owners.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers | Applies to all businesses | Does not apply to citizens |
Actors | Funding |
---|---|
Local / regional government
|
Regional funds
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Unknown | Unknown |
Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
UNIZO (one of the main representative employers' associations) informs their members on their website and helps them with the application. In addition they defend the interests of their members with the competent ministers and have actively defended the measure.
Employers associations and in particular those that are mainly involved with SME's like UNIZO and UCM are strong proponents of the measure and have demanded them.
Citation
Eurofound (2020), Company loans given for rent support, measure BE-2020-17/1214 (measures in Belgium), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/BE-2020-17_1214.html
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