Two weeks after the opening of the Coronavirus Bridging Loan (COL) and the Temporary Bridging Loan Program for innovative Startups and Scale-ups (TOPSS), applications have been submitted by almost 1,300 startups, scale-ups, and innovative SMEs. Applications totalling €630 million have been made to one or other of the two schemes.
COL proving particularly popular
Since April 29, approximately 1,270 companies applied for some €460 million under the COL. Altogether, these companies employ 14,500 FTEs. This high number can be explained by the large funding needs of startups, scale-ups, and innovative SMEs. Under the COL, they can apply for amounts starting at €50,000 and benefit from favourable conditions. At national level, the average amount applied for is approximately €365,000. Initially, the Dutch government set aside €100 million for the Coronavirus Bridging Loan.
Due to the large number of applications, the original turnaround time of nine working days for applications up to €500,000 has proven to be impossible, so the current aim is to process these within 14 working days. For funding between €500,000 and €2 million, we aim for a processing time of at most three working weeks.
Funding need under TOPSS: 170 million
Invest-NL is making €100 million available for the Temporary Bridging Loan Program for innovative Startups and Scale-ups (TOPSS). For TOPPS applications, Invest-NL has set a lower limit of €2 million. The TOPSS aims to facilitate investment in spite of the COVID-19 crisis. In two weeks, Invest-NL received 27 applications requiring total funding of €170 million. Invest-NL will pay a maximum of 50% of the funding itself if an application is approved.
About COL & TOPSS
The Coronavirus Bridging Loan (COL) is an emergency loan for innovative entrepreneurs and SMEs who do not have a bank loan facility and are facing financial difficulties as a result of Covid19. This facility was developed as part of an intensive collaboration between the Dutch Ministry of Economic Affairs and Climate Policy (EZK), the joint Regional Development Corporations (ROMs) and TechLeap.nl, and with the close involvement of Invest-NL. At the request of the EZK, the ROMs are providing bridging loans of between €50,000 and €2 million.
With TOPSS, Invest-NL is seeking to guarantee the availability of venture capital to innovative startups and scale-ups. The lower limit for TOPSS applications is €2 million. TOPSS funding is being provided in the form of a convertible loan, and always with the involvement of other professional investors.
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