In order to help SME entrepreneurs affected by the corona crisis, the rules for the SME Credit Guarantee Scheme (Borgstelling MKB-kredieten, BMKB) have been relaxed. This adjusted regulation is called the BMKB-C. The measure allows businesses to borrow money from the bank under more favourable conditions, for example in order to be able to continue to meet daily payment obligations, pay bills and clear payment arrears. This scheme is also open to bridging loans and overdraft facilities with a term of up to two years. This will make it easier and quicker for financiers (in particular banks) to extend credit to small and medium-sized enterprises (SMEs).
The BMKB is intended for companies with up to 250 employees (FTEs) with an annual turnover of up to EUR 50 million or a balance sheet total of up to EUR 43 million. The government then partly guarantees companies that want to take out a loan, but are unable to offer sufficient security to the financier (especially banks).
What can the BMKB be used for?
The BMKB can be used by companies for bridging loans or for increasing their current account, i.e. the amount that they are allowed to overdraft. This can be important for smaller entrepreneurs who are losing income or production due to the coronavirus.
Because of the extended conditions an entrepreneur can borrow more easily and up to a higher amount.
MKB or SME
The BMKB is accessible to companies that fall under the SME definition. Large companies are excluded, as are natural persons. Certain business groups and financing objectives are also excluded from the guarantee scheme, such as agriculture, fisheries, public health care, companies in the financial sector and real estate. For farmers and horticulturists with liquidity problems, the Guarantee Scheme for SME Agricultural Loans (Borgstelling MKB-Landbouwkredieten, BL) can offer a solution.
ZZP-ers or sole proprietors or freelancers
ZZP’ers can also make use of the BMKB. However, self-employed people usually have less need for financing and therefore make less use of it.
What does the scheme entail?
- The government guarantees 90% of the amount borrowed. 75% of a bridging loan can be financed with BMKB (was 50%).
- The personal guarantee of the entrepreneur is reduced from 25% to 10%.
- The credit part at the risk of the bank can take the form of a new loan, a new current account credit (in red) or an increase of an existing current account credit.
- The maximum credit is set at 1.5 million euros.
- The maximum maturity of the BMKB credit is 8 quarters.
- The method of repayment is at the discretion of the bank. The options are:
– linear (each time the same amount + interest on the outstanding amount), possibly with a grace period;
– lump sum, at the end of the term.
- The test for a lack of securities is not applicable to BMKB.
Entrepreneurs must apply to their lender for this scheme. The BMKB application is made through an accredited financier, usually a bank. The accredited financiers are listed on the RVO website. Banks can apply for the extended BMKB at the Rijksdienst voor Ondernemend Nederland (RVO.nl).
More information about this scheme can be obtained via the advisory team of the Chamber of Commerce, 0800 – 2117.