Extension of current support and recovery package for companies

The cabinet has decided to extend the existing NOW, TVL and Tozo schemes by nine months. These measures will be extended in an adjusted form until the end of June 2021. However, they will be reduced and gradually phased out in the coming months. This new package will come into effect on 1 October.

The announced measures amount to approximately 11 billion euros. This also includes a billion in early investments. With this package, the government hopes to stimulate investments and ultimately realize economic growth again.  

In addition to the regulations (which are explained step by step below), the government will also bring forward investment plans. For example, 150 million will be given to the Regional Development Companies (ROMs) and 250 million euros in co-financing of European programs.

What does this mean for the NOW scheme?

The NOW wage compensation scheme will be extended until 1 July 2021. This will happen in three parts of three months, during which the scheme will be gradually phased out. This scheme will also be adjusted on several points in the long term. For example, in the previous NOW scheme, up to ninety percent of the payroll was still reimbursed. From October, this will be reduced by ten percent in three-monthly instalments.

In addition, the subsidy discount will be scrapped and the maximum compensation in the third period will be reduced. The UWV will continue to implement the scheme. More information about this can be found on the website to find.

What does this mean for the Tozo scheme?

The current Tozo scheme will be continued, but with adjusted conditions. In this third support package, the Tozo will continue until the end of June 2021. The application period runs between 1 October 2020 and 30 June 2021. As with the previous versions, the application is processed via the municipality. It is important to note that the application option and procedure may differ per municipality. The Tozo again consists of a subsistence allowance and an option to apply for business credit.

An asset test is added to the new extension. In order to qualify for the third tranche, it is not permitted to have more than 46,520 euros in available funds. From 1 January, recipients can also claim coaching and advice for further and retraining. The scheme will end definitively at the end of June 2021.

Want to know more? Then take a look at the website of the National governmentApplications can be submitted via the municipality where you live.

What does this mean for the TVL scheme?

The TVL is a compensation for fixed costs and this will also be extended with adjusted conditions until the end of June 2021. The extension will take effect on 1 October and the TVL can be applied for every three months. The scheme will be phased out gradually from 1 January. The TVL scheme, like the NOW scheme, will run in three periods of three months.

To qualify for the scheme, there must be at least 4,000 euros in fixed costs in three months. In the previous support package, this was still four months. The maximum subsidy amount has also been increased from 50,000 to 90,000 euros.

More information about the TVL scheme? See the website of the RVO.