Business loan repayment holiday scheme
Federal Minister of Finance Alexander De Croo, the National Bank of Belgium and Febelfin have announced financial support measures for businesses suffering financial difficulties due to the coronavirus outbreak. Businesses eligible under the scheme can apply for a repayment holiday of up to six months for business loans.
Who is eligible for a repayment holiday?
The special measure referred to above is intended for healthy businesses that are currently having difficulties making loan repayments due to the coronavirus outbreak. A repayment holiday can be requested by non-financial companies, SMEs, the self-employed and non-profit organisations that meet each of these 4 criteria:
- The company/organisation is faced with payment problems due to the coronavirus crisis:
- Turnover or business activity has fallen or will fall;
- Measures for temporary or permanent unemployment have been fully or partially introduced;
- The government has ordered the company to close as a measure to contain the spread of the coronavirus.
- The company/organisation is permanently established in Belgium.
- The company/organisation had no arrears on its current loans or in relation to its tax liabilities or social security contributions on 1 February 2020, or the company had less than 30 days arrears on its current loans or in relation to its tax liabilities or social security contributions on 29 February 2020.
- The company/organisation has met its contractual loan obligations with all banks in the 12 months prior to 31 January 2020 and is not subject to active forbearance measures.
Public authorities cannot apply for a loan repayment holiday.