The SME Credit Guarantee Scheme is a scheme whereby the Ministry of Economic Affairs and Climate stands guarantor for part of a loan a company takes out. This "BMKB scheme" was created for companies that want to take out financing, but cannot offer sufficient security to the financier.
To accommodate entrepreneurs as a result of current developments, the government has decided to widen the BMKB scheme from 16 March 2020.
Expanding the BMKB scheme is an attempt to prevent liquidity problems as much as possible. After all, many invoices will currently remain unpaid, while the company's costs remain (almost) the same.
To benefit from the BMKB scheme, a company must meet the following conditions:
Within the old scheme, 50% of the loan was allowed to be financed with a government guarantee. With the extended scheme, this becomes 75% of the total loan, with the government guaranteeing 90% of this 75%.
A number of other conditions in the BMKB scheme will also be relaxed. For instance, the collateral test (the collateral a company can provide) that is normally done in the BMKB scheme will be applied more flexibly. Also, the personal guarantee requirement will be significantly relaxed (from 25% to 10%) and an appropriate repayment regime is possible depending on the situation. Furthermore, the maximum of the BMKB scheme has been temporarily increased from €1 million to €1.5 million.
The application cannot be made by the entrepreneur himself. It must be done by the financier. In doing so, the financier must demonstrate, among other things, that the company has continuity prospects.
It is important to meet the conditions of the scheme as well as to ensure that the application to the government is not too focused on the financier's interests. Marxman has extensive experience in funding applications and continuity issues. Our specialists focus on advising and guiding organisations in dire straits.
The Restructuring, Financing and Insolvency team is now ready to assist fellow entrepreneurs and organisations who want to gain more insight into their situation in the short term and face the coming period from a promising scenario. We have been working with a team of specialists in financial control, crisis management, recovery and government guarantee scheme specialists for decades. You can approach us through a single point of contact, giving you access to integrated services. We stand for speed, expertise and transparency. And - given the special circumstances - have an eye for your financial situation.
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