Counter bridging financing for innovative companies stands at 630 million
Two weeks after the opening of the Corona Bridging Loan (COL) and the Temporary Bridging Loan Program for innovative Start-up and Scale-ups (TOPSS), nearly 1,300 start-ups, scale-ups and innovative SMEs have submitted an application. The companies are applying for a total of € 630 million through either facility.
Especially many applications for the COL
About 1,270 companies applied for approximately € 460 million through the COL since April 29. These companies together account for the employment of 14,500 FTEs. The high number can be explained by the large financing needs of startups, scale-ups and innovative SMEs.
They can submit an application via the COL from € 50,000 and make use of favourable conditions. The average amount applied for nationally is approximately € 365,000. Initially, the Cabinet has earmarked € 100 million for the Corona Bridging Loan.
Due to a large number of applications, the turnaround time of 9 working days for applications up to € 500,000 is not feasible and the aim is to process these within 14 working days. For financing between € 500,000 and € 2 million, we aim for an execution period of a maximum of three working weeks.
Borrowing requirement TOPSS 170 million
Invest-NL is allocating € 100 million to the Temporary Bridging Loan Program for innovative Start-up and Scaleups (TOPSS). Invest-NL applies a lower limit of € 2 million for TOPSS applications. TOPSS financing is intended to continue investing during the COVID-19 crisis. Invest-NL received 27 applications in two weeks. The total financing requirement for these applications is € 170 million. Invest-NL will take up to 50% of the financing in case of a positive assessment.
About COL & TOPSS
The Corona Bridging Loan (COL) is an emergency loan for innovative entrepreneurs and SMEs without a bank credit relationship who have run into financial difficulties because of Covid19. This arrangement was established in intensive cooperation between the Ministry of Economic Affairs and Climate (EZK), the joint Regional Development Companies (ROMs) and TechLeap.nl, also with the close involvement of Invest-NL. At the request of EZK, the ROMs provide bridging loans between € 50,000 and € 2 million.
Invest-NL wants to guarantee the availability of risk capital for innovative start-ups and scale-ups with TOPSS. TOPSS applications have a lower limit of € 2 million. The TOPSS financing is in the form of a convertible loan and is always done with the involvement of other professional investors.
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