Two weeks after the opening of the Corona Bridging Loan (COL) and the Temporary Bridging Loan Program Innovative Startups and Scaleups (TOPSS), nearly 1,300 startups, scaleups and innovative SMEs have applied. The companies are applying for a total of €630 million through either facility.
In particular, many applications for the COL
About 1,270 companies applied for some €460 million through the COL since April 29. Together, these companies account for the employment of 14,500 FTEs. The high number can be explained by the high funding needs of startups, scale-ups and innovative SMEs. They can submit an application from €50,000 through the COL and take advantage of favorable conditions. The average requested amount nationwide is approximately €365,000. The Cabinet has initially allocated €100 million for the Corona Bridge Loan.
Due to the large volume of applications, the turnaround time of 9 working days for applications up to €500,000 proves unfeasible and we aim to process them within 14 working days. For financings between €500,000 and €2 million, we aim for a turnaround time of no more than three working weeks.
Funding requirement TOPSS 170 million
Invest-NL is allocating €100 million for the Temporary Bridging Loan Program Innovative Startups and Scaleups (TOPSS). For TOPSS applications, Invest-NL uses a lower limit of €2 million. TOPSS funding is intended to continue investing even during the COVID-19 crisis. In two weeks, Invest-NL received 27 applications. The total funding requirement of these applications is €170 million. Invest-NL will provide up to 50% of the funding in case of a positive evaluation.
The COL in the Northern Netherlands
Geert Buiter, deputy director NOM and manager NOM Finance: "The COL scheme clearly fills a need given the large number of applications received since April 29. With this scheme we can help a good number of entrepreneurs through this difficult period and hopefully bring them to a good future in the post corona era." In numbers, NOM has received 65 applications from organizations employing a total of 530 FTEs since the start of the COL scheme (April 29, 2020). The average amount applied for from these organizations is 284K and a total of over 18 million euros has been applied for.
About COL & TOPSS
The Corona-OverbruggingsLening (COL) is an emergency loan for innovative entrepreneurs and SMEs without a bank credit relationship who have run into financial difficulties due to Covid19. This scheme was created in intensive cooperation between the Ministry of Economic Affairs and Climate (EZK), the joint Regional Development Companies (ROMs) and TechLeap.nl with also close involvement of Invest-NL. At the request of EZK, the ROMs provide bridging loans between €50,000 and €2 million.
Invest-NL wants to guarantee the availability of venture capital for innovative startups and scaleups with TOPSS. TOPSS applications have a lower limit of €2 million. TOPSS funding is provided in the form of a convertible loan and is always done with the involvement of other professional investors.
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