Expansion of scope of COVID-related measures under TVL scheme
TVL, the Dutch government’s fixed-cost compensation scheme, offers a helping hand to entrepreneurs whose sales the COVID pandemic has caused to drop off by 30 percent or more, by compensating them at a sector-specific flat-rate percentage of fixed costs. The relevant percentage has now been raised from its former level of 50 to 70 percent to 85 percent of fixed costs, with the quarterly compensation maximum being increased from 90,000 to 330,000 euros. The workforce maximum of 250 has been dropped altogether with effect from Q1 2021. The maximum quarterly compensation to be doled out to major enterprises has been capped at 400,000 euros each.
Small businesses
The compensation minimum per small business has been increased from 750 to 1,500 euros, in addition to which there is talk of the quarterly fixed-cost threshold being lowered from its current level of 3,000 euros.
Extra retail shut-down subsidy
The incremental subsidy for the owners of mandatorily shut down retail businesses has been prolonged to include the first quarter of 2021, at a rate which for Q1 2021 has been increased from its Q4 2020 level of 5.6 percent to 21 percent (depending on actual sales loss), to an overall maximum of 200,000 euros per applicant. There is no need for retailers to file a separate application for the extra subsidy.
Start-ups
A separate programme (to apply throughout the first half of 2021) based on the existing TVL scheme is being finalised – for roll-out in April or May of this year, it is hoped – for those who launched their own business some time during the first half of 2020. The third quarter of 2020 has been selected as the reference period to be used by the relevant start-ups. As those having launched a business of their own in the 2.5 month interval between the first of January and the 15th of March of the current year would also have the option of applying for “regular” TVL subsidy, in order to avoid overlap the Cabinet is considering issuing an additional directive to the effect that such 2021 start-ups may only apply for TVL subsidy for the second quarter of 2021 as per the new programme.
Agricultural cum horticultural sector to be allowed generic subsidy limit
Medium-sized businesses forming part of the agricultural cum horticultural sector are not currently eligible for the higher fixed cost compensation maximum owing to the fact that the TVL application was made under the EU support framework. Work is under way aimed at anchoring the scheme in an alternative government support framework similar to the expanded TVL scheme. It is the Cabinet’s intention retroactively from Q1 2021 onwards to launch the revised scheme in April or May of this year.
Special scheme for costs incurred by agricultural and horticultural businesses
As many agricultural and horticultural businesses incur ongoing costs for keeping their crop plants and livestock alive, it has been decided to add a 21 percentage point increment to the TVL subsidy for which agricultural businesses having SBI codes 1.1 to 1.5 inclusive are eligible.
Dutch version: Nieuwe coronamaatregelen TVL