Factsheet for measure
NL-2020-12/753
–
Updated
– measures in Netherlands
Temporary guarantees for companies active in agriculture and horticulture sectors
Borgstellingskrediet voor de Landbouw overbruggingsfinanciering (BL-C)
Background information
This measure is part of the package of emergency solutions to deal with the COVID-19. This was a package of several measures which have been taken to contrast the outbreak and its effects, announced on 17 March, 2020.
This measure aims to help small farms and farmers to keep their businesses afloat. It targets enterprises in the horti- and agricultural sectors as a whole because this sector was one of the first to feel a marked hit from the crisis. This includes the provision of food and other grown products, not just for domestic consumption but also for trade. The seasonality of work in this sector and the timing of the COVID-19 crisis seem to have led to this group of enterprises receiving specific support.
Content of measure
The sectors covered here by this measure include the agriculture and horticulture sector, the fisheries sector, and the aquaculture sector. These sectors are all confronted by an international and domestic decrease in demand for their produce.
The Ministry of Agriculture, Nature and Food Quality (ministerie van Landbouw, Natuur en Voedselkwaliteit - LNV), will therefore temporarily underwrite working capital granted to farms and horticultural companies under the the Guarantee for Agricultural SME Credit, (Borgstelling MKB-Landbouwkredieten), which is part of the Guarantee SME Loans scheme for small and medium-sized farms and enterprises.
In this way, the government will act as a guarantor for loans granted to farms. The government seeks to ensure that the scope of this scheme will be broadened in the short term. Enterprises can seek credit to bridge their troubled times of up to €15 million, for which the Ministry of LNV will act as guarantor for up to 70%. The credit will be for a maximum of two years.
This measure was set to stay into force for three months initially, but the timing for COVID-19-related measures is constantly evolving and this may change.
Updates
The following updates to this measure have been made after it came into effect.
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09 March 2022
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The BL-C loan guarantee was extended until 30 June 2022.
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11 May 2021
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The BL-C loan can be requested until 31 December 2021.
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13 July 2020
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The scheme existed before the COVID-19 crisis. This measure has been extended since 18 March with an extra module, namely offering users a guarantee for a bridging loan, to bridge the difficult period caused by the crisis. Healthy farms, horticulture, fisheries and aquaculture companies affected or affected by the Corona virus outbreak can continue to be financed through this.
As of 10 April 2020 aquaculture farms can also make use, retroactively, of the measure. They can make use of the measure, just as other farming and fishing entrepreneurs, from 18 March 2020.
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Use of measure
CBS (Central Statistics Office) data of 31 May 2021 indicates a number of 210 companies receiving a BL-C guarantee, with a total amount of €60 million.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Unknown
Involvement
Since the outbreak of the Corona crisis, the government has had regular and close consultation with the social partners. Together the national level social partners and the government arrived at the first and second packages of emergency measures, announced 17 March and 20 May respectively.
Views and reactions
Though not discussed in great detail, the social partners (national level trade unions and employer organisations), have come together to discuss with the government how best to tackle the effects of the corona virus on workers and employers so as to keep the Dutch economy going. In the Netherlands relevant, national sectoral social partners are often involved in national policy making in a consultational capacity so that partners may reflect on regulatory plans and their intended impacts. This happens in a direct consultation fashion or through tripartite meetings (facilitated by the National Labour Foundation). The social partners were consulted for the whole package of measures introduced by the Dutch cabinet on 17 March 2020.
Sectors and occupations
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This case is sector-specific
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Economic area
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Sector (NACE level 2)
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A - Agriculture, Forestry And Fishing
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A1 Crop and animal production, hunting and related service activities
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A2 Forestry and logging
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A3 Fishing and aquaculture
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This case is not occupation-specific.
Sources
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17 March 2020: Coronavirus: kabinet neemt pakket nieuwe maatregelen voor banen en economie
(www.rijksoverheid.nl)
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20 March 2020: Vragen over de Borgstelling MKB-Landbouwkredieten voor tijdelijke kredietfaciliteiten (BL-C)
(www.rijksoverheid.nl)
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22 July 2020: Borgstellingskrediet Landbouw verruimd in verband met corona
(www.rvo.nl)
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22 July 2020: RVO, (no date), Borgstellingskrediet Landbouw verruimd in verband met corona
(www.rvo.nl)
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11 May 2021: Vragen over de Borgstelling MKB-Landbouwkredieten voor corona-overbruggingsfinanciering (BL-C)
(www.rijksoverheid.nl)
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09 July 2021: Gebruik van steunmaatregelen corona per 31 mei
(www.cbs.nl)
