Background information

The Welfare Fund is an initiative of the Flemish Government to provide an additional solution to counter the impact of the COVID-19 crisis on Flemish companies. The Welfare Fund wants to support intrinsically healthy companies that have a link with Flanders and/or let them grow faster in order to strengthen their solvency.

The Welfare Fund organises and combines the strength of different financial partners to strengthen the solvency of companies with a link to Flanders. The Welfare Fund can invest, alone or together with other financial partners, in large companies, SMEs, start-ups and scale-ups in all sectors.

Content of measure

The Welfare Fund provides capital, quasi-capital and subordinated loans of minimum €1.25 million to maximum €50 million to companies. The duration of this financing is tailored to the application it finances, but limited in time until the maximum duration of the fund. The fund has an investment period of 4 years and a runtime of 10 years. For the duration of the investment, a representative of the Welfare Fund will have a say in the management of the company. If appropriate, this participation can be enforced through a seat on the company's board of directors, and if applicable, voting rights as a shareholder.

Both companies that require additional finances to strengthen their solvency because of the COVID-19 crisis as well as companies that see in this crisis the opportunity to accelerate their growth can apply to the Welfare Fund for financing. In addition, innovation-driven companies with a link to Flanders or healthy Flemish subsidiaries of international groups that have run into problems are part of the target group of the fund.

The Welfare Fund only provides financing to companies that were and still are financially viable before the crisis. Apart from some primary sector subsectors, companies from all sectors are open to apply to the fund.

Use of measure

On 30 August 2021 Flemish Minister of Economy Hilde Crevits, AG Insurance, Baloise Belgium, Belfius Insurance, BNP Paribas Fortis, Ethias, KBC and Participatie Maatschappij Vlaanderen announced the first closing of the Welfare Fund. The consortium of financial partners commits itself in this phase to invest €167 million in the Flemish economy.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
Company / Companies Local / regional government	Companies Regional funds

Social partners

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:

• Unknown
• Main level of involvement: N/A

Involvement

The involvement of the social partners is unknown, they are not listed as partners by the Welfare Fund itself so it is probably limited.

Views and reactions

Employers' association Unizo is positive about the welfare fund, they believe it is an important part of a buffer to maintain a connection with Flanders for many companies and prevent easy acquisition of Flemish companies by foreign investors.

Sources

• 31 August 2021: Welvaartsfonds (www.vlaio.be)