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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case NL-2020-19/1819 Updated – measures in Netherlands

Bridging loans for micro, small and medium sized enterprises

Kleine kredieten corona (KKC)

Country Netherlands , applies nationwide
Time period Temporary, 07 May 2020 – 31 December 2021
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Access to finance
Author Amber van der Graaf (Panteia) and Eurofound
Case created 08 April 2021 (updated 18 October 2021)

Background information

The corona bridging loans for small companies (KKC) is one of the additional measures to support entrepreneurs due to the economic consequences of the pandemic. This additional measure is aimed at micro and small and medium enterprises. These enterprises often have difficulty accessing financial support. They are of enormous importance to their local community and often hit hard by the pandemic.

Content of measure

The KKC is a government-provided loan guarantee of 95% for small companies who need between €10,000 and €50,000 in credit with a budget of €750 million.

To be eligible for the KKC:

  • An enterprise must, among other things, be registered with the Chamber of Commerce before 1 January 2019.
  • Loans issued since May 7, 2020 that meet the conditions can be refinanced under the terms of the KKC.
  • Loans are only provided to companies that were fundamentally financially healthy before COVID-19 with sufficient repayment capacity.
  • The term of the loan is a maximum of 5 years and the interest is a maximum of 4%.
  • In addition, entrepreneurs pay the state a one-off compensation premium of 2%. The credit serves to finance the loss suffered or foreseeable as a result of the pandemic.

This measure has been approved by the European Commission.

Updates

The following updates to this measure have been made after it came into effect.

27 May 2021

The government has extended the credit arrangements, including KKC, until 31 December 2021.

Use of measure

Central Statistics Office data shows that a total number of 1,820 companies made use of this measure, for a total amount of €58 million (CBS, 2021).

Target groups

Workers Businesses Citizens
Does not apply to workers Solo-self-employed
SMEs
One person or microenterprises
Start-ups
Does not apply to citizens

Actors and funding

Actors Funding
National government
Employers' organisations
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Consulted
Form Not applicable Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Only employers' organisations
  • Main level of involvement: Peak or cross-sectoral level

Involvement

This measure was partly initiated by the banks. The banks carefully assess the credit application. Rabobank, ABN AMRO, ING, de Volksbank and Triodos have committed to offer loans through KKC.

Views and reactions

The Dutch Banking Association (NVB) is pleased with the measure for companies with a financing need of up to €50,000. The NVB stresses the importance of this measure in combination with other existing measures. This will help enterprises in persisting the crisis.

Sources

  • 08 April 2021: Kamer van Koophandel (2020). KKC: kredietregeling voor kleine leningen. (www.kvk.nl)
  • 08 April 2021: Nederlandse Vereniging van Banken (2020). Banken blij met regeling voor kleine kredieten. (www.nvb.nl)
  • 08 April 2021: Rijksdienst Voor Ondernemend Nederland (2021) Kleine Kredieten Corona garantieregeling (KKC). (www.rvo.nl)
  • 08 April 2021: Rijksoverheid (2021).KKC-regeling: Klein Krediet Corona (www.rijksoverheid.nl)
  • 30 September 2021: Hoeveel bedrijven gebruiken steunmaatregelen coronacrisis door de overheid? (www.cbs.nl)

Citation

Eurofound (2021), Bridging loans for micro, small and medium sized enterprises, case NL-2020-19/1819 (measures in Netherlands), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.