Many businesses required to repay Dutch government’s financial support
According to the Ministry of Finance, a number of businesses that received aid under the Dutch government’s coronavirus support scheme will be required to repay part of the money they received.
50.000 companies to repay over four billion euros of support
Over the past year and a half, the Dutch government has invested billions of euros into coronavirus financial support schemes in order to support businesses and self-employed people throughout the coronavirus crisis.
With the support schemes coming to an end on October 1, three officials from the Ministry of Finance have published a report, outlining the fact that over 70 percent of businesses owners overestimated their losses, and so received too much financial support under the NOW scheme.
According to the report, estimates for the second quarter of 2020 were approximately 32 percent higher than the reality. Between June and September, a whopping 79 percent of businesses who applied for the support overestimated their loss of revenue. This means that over 50.000 companies will be required to repay a total of approximately 4,2 billion euros.
Many vets in the Netherlands overestimated their losses
Interestingly, the report revealed great discrepancies between industries. The aviation and travel sectors, for example, are required to return very little of the aid received last year, whereas some entrepreneurs in the veterinary services sector have to repay as much as 83 percent of the support they received between March and May 2020, and 96 percent of the support from June and September. The IT sector also grossly overestimated losses.
A number of companies have already returned the money, and big businesses such as Booking.com and Dille and Kamille made headlines in June after announcing that they would be returning lump sums of money to the Dutch government. Any companies that underestimated their losses will be eligible to receive additional support.