Tomorrow, Friday 27 March 2020, the contents of the Temporary bridging scheme for self-employed entrepreneurs (Tozo) scheme. Through the Tozo scheme, the government supports self-employed entrepreneurs (including those working on a self-employed basis).
For whom.
The Tozo scheme is intended for self-employed people who are facing financial difficulties as a result of the coronavirus crisis. The Government is appealing to entrepreneurs on moral grounds to apply for the Tozo scheme only if they are genuinely facing financial difficulties.
To be eligible for the Tozo, the following requirements must be met:
- established self-employed people;
- from the age of 18 until retirement age;
- residing in the Netherlands and lawfully staying there;
- A Dutch national or a person treated as such;
- employed by a company or self-employed;
- meet the legal requirements for running your own business (including registration with the Chamber of Commerce);
- started the business before 1 January 2020;
- meet the hours criterion (1,225 hours’ work in the company per calendar year).
Where can I apply?
Applications for the Tozo must be submitted to the local authority where the business owner resides. The scheme applies retroactively from 1 March 2020. This means that business owners who have encountered financial difficulties from 1 March 2020 onwards as a result of the coronavirus crisis can contact their local authority.
The procedure for submitting an application varies from one local authority to another. Local authorities will organise the application and payment process in accordance with the scheme to be published on 27 March 2020. The aim is for this process to be carried out digitally as far as possible.
The aim is for local authorities to reach a decision and make a payment within four weeks of receiving the application. However, it is anticipated that this target may not always be met due to high volumes of applications. In such cases, local authorities may pay out advances.
How much?
Under the Tozo scheme, the local authority provides income support for a maximum of 3 months. The exact amount of the support depends on the composition of the household and the entrepreneur’s income. There is no means test or partner test. The income support is a net amount in the form of a grant (and therefore does not need to be repaid).
In addition, it is possible to apply for a working capital loan of up to €10,157. This loan must, however, be repaid. The interest rate has not yet been set, but will certainly be lower than the rate applied under the standard BBZ scheme (which is 8%).
Further information, as far as is currently known, can be found here frequently asked questions.