What is the guarantee for SME loans (BMKB)?
A loan with BMKB is a commercial loan supported by the Dutch State. A guarantee loan offers entrepreneurs who can offer few securities the chance of financing.
- Increase access to bank credit for healthy SMEs
- Extra opportunities for start-ups and innovative businesses
- The bank takes care of the administrative processing of the application for you
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A guarantee loan is a loan for which the Dutch State guarantees part of the loan. If you are unable to provide sufficient security, a guarantor loan can still provide the financing to make your plans possible.
In the case of a guarantee, the bank runs a lower risk of financing your plan, because the Dutch State provides (additional) security. This can have a favourable effect on the interest you pay on your financing.
The bank provides the guarantee loan on the basis of the Borgstelling MKB-kredieten (BMKB) scheme. After making an
application via LoanStreet, the bank will make an appointment with you. They will then be happy to tell you more about the conditions of a guarantee loan.
Why is the guarantee being extended by companies that get into trouble because of corona?
Stock market prices have fallen sharply in a short period of time and a number of sectors including tourism, industry and transport are feeling the hard knocks due to coronavirus problems. These are certainly uncertain times. Also for the enterprise. The companies that feel the most pain are mainly active in tourism, the manufacturing industry and the transport sector. But because of the setbacks these entrepreneurs are experiencing, they are dragging their suppliers into the malaise. We can already see that sectors such as the hospitality industry and services in the field of marketing are also affected. These sectors, in turn, will affect entrepreneurs in other SME sectors.
In several sectors, assignments are postponed or cancelled. In some companies the stock cannot be supplied by the usual suppliers, which means that sales cannot be realised and purchasing becomes more expensive again. As a result, margins ultimately shrink, while the fixed costs of the company continue to run.
In terms of productivity, you can already see a reduction. Many companies let people work from home, but have not set up the organisation for that and because of the outbreak there is less work at some companies. A recent survey by ING shows that 47% of employees say they can work almost entirely from home. However, this in turn mainly concerns business services.
In order to accommodate entrepreneurs, the government has temporarily broadened the criteria for the BMKB scheme. This should make it easier for companies to obtain credit from the Dutch banks in order to bridge this period of setback. Companies that are affected by the consequences of the coronavirus and therefore find themselves in liquidity problems, can temporarily count on extra favourable conditions under the BMKB. There will be a new temporary measure (valid until 1 April 2021) - which will be used for the broad target group of SMEs - with which the State will offer a higher guarantee share in the BMKB. Under the current scheme, the guarantee credit concerns 50% of the credit provided by the financier (often a bank). The government guarantor amounts to 90% of this guarantee credit. For this measure, the size of the guarantee credit in the BMKB is increased from 50% to 75%. This measure can be used by companies and is intended for bridging loans or increasing current account credit with a lender, with a maximum term of 1 year. A number of other conditions in the BMKB will also be relaxed. This will help companies to continue to meet their daily payment obligations. The total cost of this measure in the BMKB is estimated at between € 20 and 25 million. The government previously extended the guarantee scheme for companies in the construction sector that were affected by the nitrogen crisis.
How do I know if I am eligible for bank financing with BMKB?
The Borgstelling MKB-kredieten (BMKB) is intended for companies with a maximum of 250 employees (FTE) with an annual turnover of up to € 50 million or a balance sheet total of up to € 43 million. The vast majority of SMEs can make use of it, including entrepreneurs with liberal professions.
It therefore constitutes security given by the State to a lender in respect of the loan. The loan will often come from one of the three Dutch banks: ING Bank, Rabobank or ABN Amro. With LoanStreet you can simply and quickly check whether you are eligible for a loan from one of the Dutch banks. They will then discuss the options for the BMKB scheme with you. If you cannot get financing from one of the Dutch banks, there are plenty of alternative financiers with whom LoanStreet cooperates where you can apply for a loan.
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