Foto: Joep Boute

Contribution towards fixed costs first quarter 2021 started

Contribution towards fixed costs first quarter 2021 started SME entrepreneurs who will be affected by the measures to prevent the spread of the coronavirus in the first quarter of 2021 can apply for the Fixed Charge Contribution (TVL Q1 2021) from February 15, 12:00 noon. The scheme is open to all sectors.

TVL now available for entrepreneurs who had access to it before

Entrepreneurs who were previously able to make use of the TVL scheme can submit an application as of 15 February 12:00. Initially, the conditions as announced in December will still apply. The new conditions as announced on January 21 will be processed by RVO after approval by the European Commission and paid out by means of an additional advance payment. The extension of TVL Q4 announced earlier will now be processed in the disbursement.

Contribution towards fixed costs in the events sector for Q4 2020

Entrepreneurs in the events industry depend to a large extent on their sales in the summer months. This allows them to bridge the quieter winter months when there are few events. Due to the corona restrictions, these entrepreneurs have missed out on a lot of sales in the summer. Because the TVL scheme is based on the turnover and fixed costs of the same quarter of the previous year, and turnover in the events industry is often strongly seasonal, these entrepreneurs often cannot use the TVL scheme.

Entrepreneurs in the events industry who meet the requirements can apply for the Event Module Q4 2020 from February 18, 12:00 am to March 18, 5:00 pm. The entrepreneur will receive 33.3% of the TVL subsidy in the summer of 2020, with a minimum of 750 euros and maximum of 16,667 euros. The opening of the Event Module for Q1 2021 is expected in March.

Expansion of TVL scheme

On January 21, the Cabinet announced a substantial expansion of the TVL scheme. This will allow more entrepreneurs to claim the scheme and increase the amount of support. The scheme will be opened for the first time to companies with more than 250 employees. In addition, to give more small entrepreneurs such as beauticians and driving school owners access to the scheme, the fixed costs threshold will be lowered to 1,500 euros. The subsidy percentage will be increased to 85% for all entrepreneurs with a turnover loss of 30% or more. The maximum subsidy amount will be increased to 330,000 euros for SMEs and 400,000 euros for non-SMEs. The minimum subsidy amount will also be doubled to 1,500 euros.

Retail, travel, agriculture and horticulture

Part of the expansion of the TVL scheme is the extension and increase of the stock subsidy for mandatory closed retail. In the first quarter of 2021, the subsidy will amount to a 21% mark-up on the fixed charge rate in the TVL (previously 5.6%), up to a maximum of EUR 200,000. Entrepreneurs in the travel industry who meet the conditions can make use of the One-time Surcharge for Travel Cancellation Costs. This subsidy helps entrepreneurs to pay the costs due to cancellations that are not fully reimbursed. For example, by airlines and hotels. For this purpose, a one-time surcharge of 3.4% will be added to the fixed costs up to a maximum of EUR 130,000. Entrepreneurs in agriculture and horticulture can receive a surcharge for special costs, such as animal feed, crop protection and (plant) care. For this, a one-time surcharge of 21% is added to the fixed costs percentage.

Situation now and in the future

The extensions to the TVL scheme, including access for larger companies and the mark-up for the retail and travel sectors, are not yet active when the scheme opens. This must first be processed in an amendment regulation, approved by the European Commission and adjusted in the systems of the Rijksdienst voor Ondernemend Nederland (RVO). When the extension is processed, entrepreneurs will receive an additional advance payment and larger companies will be able to apply for an TVL. It is not yet known when the extension will be implemented.