The Flemish government is proposing a recovery plan on Monday, which should give the Flemish business world a push to get back on track after the corona crisis. It is in addition to measures such as nuisance premiums and compensation premiums that served to cushion the first shock.
Some parts of the plan were already known, others are new. They often run through Participatiemaatschappij Vlaanderen (PMV), the investment company of the Flemish government.
- Subordinated loans. Flemish companies could also contact PMV for one subordinated loan up to 2.8 million euros, the capital of which must only be repaid at the end. That gives them three years to put things back in order. The Flemish government is now doubling the budget for these loans to half a billion euros. Above that, the smoother remains winwin loan funds, whereby not PMV, but Flemings themselves can lend tax-friendly money to a company. There is a maximum of 75,000 euros for those who give the loan and a ceiling of 300,000 euros for the company that receives the loan. For up to ten years, there is a 2.5 percent tax benefit for the investor. If the loan is not paid off, 40 percent of the loan amount will be tax deductible once.
- Capital increase. The idea of the winwin loan is now also being extended to capital. The instrument will ‘friends capitalcalled. It allows families to receive a fiscal push to use their savings to invest in SMEs. The same ceilings as for the winwin loan will apply. There is a tax benefit of 2.5 percent for five years. The investment can also be in a cooperative or a citizens’ initiative.
- Government participation. There will be a separate investment fund for larger companies, start-ups and scale-ups, which will ‘welfare fundwas baptized. It will enter corporate capital and issue subordinated loans for up to four years. Flemish families can also invest in this respect in a tax-friendly manner. They receive a tax benefit of 2.5 percent of their investment for three years, with a maximum of 1,000 euros per year. More flexible rates – three percent instead of progressive rates – also apply to inheritance taxes. That way, ‘dormant savings’ can be activated, said Prime Minister Jan Jambon (N-VA). PMV puts 240 million euros into the fund and counts on 260 million euros of private money.
- Safeguards. PMV has relaxed the way in which it issues guarantees to companies, so that they can more easily take out a loan from the bank. There is a budget of EUR 100 million for guarantees for bridge loans, EUR 300 million for guarantees for new loans and via Gigarant for EUR 3 billion for guarantees for heavy financing files.
“Not all damage can be compensated,” said Prime Minister Jan Jambon. “We will not be able to save all companies. Our guiding principle is that we should pull through the companies that were healthy before the corona crisis. ”