Government measures in key jurisdictions 5th edition - Flipbook - Page 10
Belgium
Contributor: Monard Law
Loans and
financial
support
Has the
government put
in place any new
bank funding
schemes?
Employment
What financial
support is
the government
providing to
businesses and
to individuals on
employment issues?
10
Pieter Van den Broeck | Pieter.VandenBroeck@monardlaw.be | +32 (0)3/286 79 40
Ava Tu | ava.tu@monardlaw.be | +32 (0)2/234 67 10
•
In Belgium, the federal and regional governments have put in place
numerous financial support measures. Such measures include one-off
compensation to enterprises which are required to temporarily close down (such as
the hotels and restaurants), deferral payment of bank loans, government
guarantees, bridge guarantees and other measures oriented to support specific
sectors or SMEs.
•
At the federal level, the federal government decided to allow a deferral of payment for
existing credits, including corporate loans for viable non-financial enterprises, SMEs,
self-employed persons and non-profit organizations. The deferral can be requested at
the latest on 31 March 2021 for a maximum period of 9 months for payments due
(ending on 30 June 2021). However, the total deferral of payments for 2020 and 2021
together may no exceed 9 months. For companies that have already reached the
maximum term of 9 months’ payment postponement and financially healthy, it will still
be possible to obtain an additional payment extension until 30 June 2021. In addition, a
state guarantee scheme has been implemented for new loans with a term of more 12
months and a maximum of 60 months. This guarantee can be granted from 24 July
2020 until 30 June 2021.
•
The sectoral organization of insurance companies active on the Belgian market has
committed itself to continue the coverage of the collective insurances taken out by the
employer without any further formalities. The payment of the premiums by the employer
is postponed until 31 March 2021.
•
At the regional level, in Flanders, the coverage of PMV (Flemish corona crisis guarantee) has
been extended. PMV can now also grant medium-term subordinated loans to healthy
SMEs for a term of 3 years (to be applied for before 15 April 2021), with a minimum of
Ä25,000 and a maximum of Ä2,800,000. From 15 May 2021, you can apply for a restart
loan or restart credit at VLAIO (the Flanders Innovation and Entrepreneurship).
•
In the Brussels-Capital Region, the enterprises can request loans with reduced interest
rate from Finance and Invest Brussels. Emergency loan start-up investment fund
can provide loans for cultural and creative enterprises for a maximum duration of 2 years.
The Brussels’ microcredit has been strengthened in order to boost cash-flow in general
under the project “Lening BRUSOC Recover”. In addition, Brussels Waarborgfonds
(Brussels guarantee fund) also can provide guarantees on bank loans. Brussels has
introduced the Proxi loan by decree of 1 October 2020, which allows Brussels selfemployed persons and SMEs to borrow money from private individuals who benefit from
a tax credit. Under certain conditions, Brussels companies can take out an Oxygen loan of
Ä10,000 to Ä100,000, with an interest rate of 1.75%, to supplement their working capital,
purchase stocks, make investments or pay off arrears.
•
In the Walloon Region, there are also similar support measures provided by SRIW,
SOWALFIN and Groep SOGEPA (guarantees, loans anddeferrals).
•
Teleworking will remain compulsory or the norm until at least 30 June 2021. The socially
and fiscally exempt office or home working allowance of a maximum of Ä129.48 per
month will be increased to Ä144.31 in the second quarter of 2021. This is part of the fiscal
support measures, but employers are not obliged to grant this allowance. Moreover, it
remains to be seen whether the National Social Security Office will accept this increased
cost lump sum. A cautious employer will therefore not promise anything to his employees
for the time being, or will do so subject to acceptance by the NSSO.
Government measures in key jurisdictions
