The Corona Bridge Loan (Corona-OverbruggingsLening, COL) was created especially for startups, scale-ups and innovative SMEs affected by COVID-19. Previously €100 million was granted and this amount will be supplemented with €150 million as of 1 June. In this way, the government is meeting the large financing needs of these companies.
More than 500 million applied for
Since the opening of the COL on 29 April, more than 1,400 companies applied. In total, they applied for more than 500 million and the average amount applied for is approximately €360,000. The Regional Development Agencies (ROMs) provide the bridging loans at the request of the Cabinet under favourable conditions. The amounts of the loans vary between €50,000 and €2 million.
"We knew that the financing requirement was large but the number of applications even surprised us. The fact that an additional budget is now available for startups, scale-ups and innovative SMEs is a good thing. This gives them the financial space they need to bridge this period and continue their innovations. Because innovations are essential for the future earning capacity of the Netherlands and the jobs of tomorrow", says Rinke Zonneveld (Director InnovationQuarter) on behalf of the ROMs.
Application portal remains open
The impact of the corona crisis is great for startups and scale-ups: an inventory by Techleap.nl shows that 55% of companies see demand disappear due to the loss of existing customers or the absence of new customers. Fetching the necessary new funding is a problem for this group. Techleap, together with the ROMs and Invest-NL, has developed an online application portal where companies can apply for COVID-19 bridging finance.
About the COL
The Corona-OververbruggingsLening (COL) is an emergency loan for innovative entrepreneurs and SMEs without a bank credit relationship who have run into financial difficulties because of Covid19. This scheme was established in close cooperation between the Ministry of Economic Affairs and Climate Change (EZK), the joint Regional Development Agencies (ROMs) and TechLeap.nl, also with the close involvement of Invest-NL. At the request of EZK, the ROMs provide bridging loans between €50,000 and €2 million.