COVID-19 is, first and foremost a global humanitarian challenge and a medical emergency. However, we are well aware of its impact on creative entrepreneurs and freelancers. The ecosystem and sector is hit really hard economically and probably many of you have seen their clients and projects decrease in the last few weeks.

The Dutch cabinet has announced a support package for SME entrepreneurs, self-employed people and freelancers as well as large companies. In short, the measures which are now in place are as follows:

TEMPORARY ARRANGEMENT FOR COMPENSATION FOR WAGE COSTS (MINISTRY OF SOCIAL AFFAIRS AND EMPLOYMENT)
An entrepreneur who expects a loss of turnover (at least 20%) can apply to the UWV for a salary contribution for a period of three months (maximum 90% of the wage bill, depending on the loss of turnover). UWV will provide an advance of 80% of the requested contribution. This allows companies to continue to pay their staff. The condition is that no staff may be made redundant for economic reasons during the subsidy period. This Temporary Emergency Measure Bridging for Work Retention (NOW) will be opened as soon as possible and will replace the current working time reduction scheme. No new applications can immediately be submitted for this to SZW. Applications that have already been made but not yet settled will be handled in the new scheme. Entrepreneurs can apply for the allowance for a decrease in turnover from 1 March.
EXTRA SUPPORT FOR INDEPENDENT ENTREPRENEURS (MINISTRY OF SOCIAL AFFAIRS AND EMPLOYMENT AND MUNICIPALITIES)
The cabinet is introducing a temporary, relaxed arrangement to support independent entrepreneurs, including self-employed persons, so that they can continue their business. The scheme is implemented by the municipalities. Self-employed persons can receive additional income support for subsistence for a period of three months through an accelerated procedure. This supplements the income to the social minimum and does not have to be repaid. There is no asset or partner test in this temporary assistance scheme for self-employed persons. Support under this temporary scheme is also possible in the form of a working capital loan at a reduced interest rate.
RELAXATION OF DEFERRAL OF PAYMENT OF TAX AND REDUCTION OF FINES (TAX AND CUSTOMS ADMINISTRATION)
Affected entrepreneurs can more easily apply for deferral of tax. The Tax Authorities will then immediately stop the collections. This applies to income, corporate, wage and turnover taxes (VAT). Any default penalties for late payment do not have to be paid. Moreover, it is not necessary to send evidence immediately. The entrepreneur gets longer to do this. The recovery interest that normally starts after the expiry of the payment term is temporarily reduced from 4% to almost 0%. This applies to all tax debts. The rate of the tax interest also temporarily goes to almost 0%. This reduction will apply to all taxes subject to tax interest. The cabinet will adjust the tax rate as soon as possible.
BROADENING OF THE GUARANTEE FOR ENTREPRENEUR FINANCING (MINISTRY OF ECONOMIC AFFAIRS)
Businesses that experience problems in obtaining bank loans and bank guarantees can use the Guarantee Business Financing scheme (GO). The cabinet proposes to increase the GO's guarantee ceiling from 400 million to 1.5 billion euros. With the GO, EZK helps both SMEs and large companies with a 50% guarantee on bank loans and bank guarantees (minimum 1.5 million - maximum 50 million euros per company). The maximum per company is temporarily increased to 150 million euros. The Cabinet is committed to providing all warranty space that is required.
INTEREST DISCOUNT SMALL ENTREPRENEURS ON MICROCREDITS QREDITS (MINISTRY OF EZK)
Microcredit provider Qredits finances and coaches a large group of small and starting entrepreneurs, who often find it difficult to obtain financing through the bank. These include entrepreneurs in the catering, retail, personal care, construction and business services. Qredits opens a temporary crisis measure: for small entrepreneurs affected by the corona issue, a repayment of six months is offered and the interest during this period is automatically reduced to 2%. The Cabinet supports Qredits for this measure with a maximum of 6 million euros.
COMPENSATION SCHEME FOR THE ARTS AND CULTURE SECTOR (MINISTRY OF EZK)
The government's health measures have enormous consequences for income in a number of sectors in particular. Such as the (mandatory) closure of food and beverage outlets and cancellations in the travel industry. Moreover, this income is difficult to catch up when the coronavirus is over. The Cabinet is therefore introducing a compensation scheme that also applies to the Arts and Culture sector, and the government proposes to grant companies in these and other such sectors a fixed fee of € 4,000. The conditions for this compensation are not yet known. This is now being worked out and urgently submitted to the European Commission for the assessment of (permissible) state aid.

WHERE CAN ENTREPRENEURS GO?
Entrepreneurs report to their credit company regarding the loans provided, and for tax measures they can contact the Belastingdienst (Tax Authority) Belastingdienst.nl/coronavirus You can also call the Kamer van Koophandel (Chamber of Commerce) Advice Team on +31 (0)800 2117 on weekdays from 8:30 to 17:00.

Image: Emilie Thirion by Team Peter Stigter during FASHIONCLASH Festival 2016