Cabinet extends scheme that makes it easier for small entrepreneurs to borrow

The Dutch government is extending its small business loan guarantee, which will make it easier for small and medium-sized businesses to obtain a loan. Under the scheme, the Ministry of Economic Affairs guarantees a substantial part of the loan. This lowers the risk for lenders, including banks, to provide cash loans to smaller companies.

"Not every entrepreneur has sufficient collateral that is necessary to arrange financing with a lender," said Economic Affairs Minister Micky Adriaansen. Medium-sized and small companies are more likely "to have trouble obtaining business financing, when this is extremely important for investment and growth."

A recent evaluation showed that the BMKB scheme helps around 3,000 entrepreneurs each year take out a loan, which can then be used for investments. The guarantee helps companies with their turnover growth, profitability and, in the long term, with their financial health, the ministry said.

Adjustments made as a result of the evaluation should make the scheme more suitable for small loans.

One of the recommendations was to reduce the amount paid as a commission when taking out the BMKB. An independent expert will examine this, Adriaansens said.