What is the GO scheme and how do you apply for it?

Do you have a medium to large company and are you looking for credit? Then the Business Financing Guarantee (GO scheme) might be something for you. Due to corona, this arrangement is temporarily being expanded, so you can borrow more.

The GO scheme is especially relevant for entrepreneurs who have difficulty obtaining a bank loan or bank guarantee. The government takes over part of the risk from the bank. Banks receive a 50% state guarantee on loans of a minimum of $ 1.5 million and a maximum of $ 50 million (temporarily increased to $ 150 million). Due to the corona crisis, this percentage has been increased to 80 percent (large businesses) or 90 percent (SMEs).

This state guarantee means that banks run less risk and have more options for lending money. This allows more companies to receive financing, which is good for the Dutch economy. The participating banks have already provided more than $ 3.5 billion in loans through the GO scheme since 2009. This means that the government has issued guarantees worth more than $ 1.75 billion.

What are the conditions of the GO scheme?

Not everyone is eligible for the GO. Your company must meet a number of conditions:

You have a healthy business.

Your company is (medium) large and has (substantial) activities in the Netherlands, Bonaire, St. Eustatius or Saba.

Profitability and continuity prospects are positive.

You only have Fresh Money. This means that you may not replace existing non-guaranteed financing with guaranteed financing.

There have been no excessive withdrawals in the last 12 months.

You apply for the GO to finance your own business activities.

How do you apply for the Corporate Financing Guarantee?

As an entrepreneur you cannot apply for the GO yourself. Your financier must apply for this scheme at the Netherlands Enterprise Agency (RVO). Here you will find an overview of all banks participating in the GO scheme.

The bank first decides whether your credit application will be processed. They then determine whether an application for the GO scheme will be made. If you are indeed eligible for this scheme, the bank will send a standard form with a number of attachments:

Your credit proposal including all attachments

The minutes of the approval decision.

Your company’s annual accounts for the past 2 years, interim figures and the multi-year forecast after granting funding.

Corona measure: extension of the GO scheme

The outbreak of the corona virus is already having a significant impact on Dutch business. The government has therefore presented an emergency package with measures . One of those measures is to expand the GO scheme.

The maximum per company has been temporarily increased to $ 150 million. In addition, the cabinet has increased the guarantee ceiling from $ 400 million to $ 10 billion. The guarantee percentage has also been increased from 50 percent to 80 percent for large companies and 90 percent for SMEs, on the condition that you have been affected by corona. Your financier can request the GO up to and including March 30, 2021, the extension (GO-C) can be requested up to and including December 14, 2020.