Half of companies that received covid support must repay advance
Around half of the 32 thousand companies who received compensation of their fixed costs as part of the special coronavirus subsidy scheme TVL achieved a higher turnover between June and September 2020 than expected. As a result, 16 percent of the companies must fully repay the advance, and 34 percent must reimburse it partially, Statistics Netherlands reported.
Companies were able to apply for the TVL scheme if they anticipated a turnover loss of at least 30 percent due to the impact of the pandemic. For some entrepreneurs, it was difficult to estimate the true loss given the uncertainty of the coronavirus crisis.
Every two out of three companies' estimated losses deviated from their actual deficit. Half of the companies overestimated their loss and must now repay the money received. Around 12 percent of the companies underestimated their loss and will now receive higher compensation. For the remaining 38 percent, the estimate was correct.
Particularly, restaurants, hotels, hairdressers and beauty salons often have to repay the advance. IT companies, temporary employment and travel agencies, on the other hand, mostly underestimated their turnover deficit.