Temporary support for independent
entrepreneurs including
directors/majority shareholders

Independent entrepreneurs will be able, under an accelerated procedure, to obtain additional income support to help pay their living expenses, and/or a loan for business capital, for a period of three months. This scheme, known as the Temporary Bridging Measure for Self-Employed Professionals (Tijdelijke overbruggingsregeling zelfstandige ondernemers – Tozo), does not include a means test or a partner’s income test. Nor does it include a test of your business’s viability.

The income support component will be provided within four weeks, if necessary in the form of advances. The same also applies to loans for business capital up to a maximum of € 10,157. The amount of income support provided depends on your income and the composition of your household, and amounts to a maximum of € 1,500 (net) per month.

Note: The income support component, which helps cover living expenses, does not need to be paid back.

The loan for business capital has a term of three years and no repayments need to be made until 1 January 2021. The interest rate is 2%.

Who does this new scheme apply to?

The Temporary Bridging Measure for Self-Employed Professionals is intended for established independent entrepreneurs who experience financial difficulties due to the coronavirus crisis. The government is asking independent entrepreneurs not to apply for benefit until their income has fallen below the level of the guaranteed minimum income. This is to prevent public funds from being used for purposes other than those for which they are intended, and to prevent municipalities from coming under too much pressure.

The scheme is intended for established independent entrepreneurs aged 18 and over who have not yet reached retirement age and who:

• Live in the Netherlands and are legitimate residents of the Netherlands;
• Are Dutch nationals or considered equivalent to Dutch nationals;
• Carry on a business or practise a profession in the Netherlands;
• Comply with the legal requirements for operating a business, which include an entry in the Commercial Register of the Chamber of Commerce;
• Started their business before 17 March 2020 and satisfy the hours criterion (this requires that you spend a minimum of 1,225 hours per year, or are able to prove you spend at least 24 hours a week, working for your own business or practising your profession).
• Are resident in the municipality where they apply for additional income support.

What are the rules?

The independent entrepreneur must in any event truthfully declare that, during the period income support is provided, their income is expected to be below the applicable guaranteed minimum income due to the coronavirus crisis. The amount of income support will depend on the amount of income the independent entrepreneur expects to earn.

Directors/majority shareholders of private limited companies are also entitled to this benefit. To qualify, the director/majority shareholder must satisfy the hours criterion, must have full control of the company and must bear financial risks. In addition, the director/majority shareholder must truthfully declare, and adequately demonstrate, that the company is currently unable to pay any salary.
The income support counts towards the aggregate income and will therefore affect income-dependent allowances.

Recipients of the benefit are required to report any changes in their situation as regards their income. The municipalities will subsequently check the actual amount of income they earned. If a municipality establishes that fraud has been committed, it will claim back the benefit and may impose a fine.

It is possible to apply for both the Temporary Bridging Measure for Self-Employed Professionals and the Compensation for Entrepreneurs in Affected Sectors COVID-19 (Tegemoetkoming Ondernemers Getroffen Sectoren COVID-19 – TOGS), which consists of a € 4,000 reimbursement to help cover operating expenses. The Temporary Bridging Measure for Self-Employed Professionals is a form of income support. The € 4,000 reimbursement does not affect the level of this benefit.

The Temporary Bridging Measure for Self-Employed Professionals will be made available this week to everyone who is eligible, and can be obtained by applying to your municipality. We can, of course, assist you with your application for the Temporary Bridging Measure for Self-Employed Professionals and/or Compensation for Entrepreneurs in Affected Sectors COVID-19.

Knowledge dossier on our website

Do you want to know what possibilities are available to you for gearing your business processes to the measures taken so far in connection with coronavirus, or what you can do to help your business stay afloat? We have created a special page on our website, where our coronavirus team of specialists will share their knowledge with you in the coming months. Keep a close eye on that page so that you can make the right choices for your organisation. If you have specific questions about the impact on your organisation, please get in touch with your contact person at Moore DRV or complete the contact form below.