From 29 April to 1 July 2020, over 600 start-ups, scale-ups and innovative SMEs received a Corona Bridging Loan (COL) for an expected total amount of € 217 million. This appears from an interim report by Techleap.nl that manages and analyses the COL portal. The Corona Bridging Loan (COL) is an emergency loan made available by the Dutch Ministry of Economic Affairs and Climate Policy for innovative entrepreneurs and SMEs without a bank credit relationship that have run into financial difficulties due to COVID-19.
A majority of the companies that received a COL loan are enterprises that are already in a scale-up phase and/or already have an investor on board. It therefore primarily concerns companies with a proven innovation and a sustainable business model. Companies in the High-tech, Med-tech and Life Sciences sectors were most often allocated a bridging loan.
Need is high
Nearly 1,800 companies applied for over € 630 million via the COL between 29 April and 1 July, the reference date of the interim report. The vast majority (74%) of the applicants applied for bridging credit in the € 50,000 – 250,000 category with a median amount of € 240,000. Start-ups applied most often (59%), followed by scale-ups (23%).
For all the applications up until 1 July, the prognosis is that ultimately 40% will be allocated. € 217 million in loans is expected to be paid out for the applications until 1 July. A total of € 300 million has been made available by the government for the COL. It is expected that the remaining € 83 million will also be allocated before 1 October, the end date of the COL.
Maurice van Tilburg, Director Capital, Techleap.nl: “We are pleased that we have been able to support so many companies with their application for COL financing. As expert partner and manager of the COL portal, we are still analysing the data to see if the COL is doing what it is supposed to do. And of course, now that the bridging financing has almost come to end, we and our partners will continue to work on solutions that offer long-term support to help our innovative tech companies in the crisis.”
Rinke Zonneveld, InnovationQuarter Director and chairman of the joint regional development companies: “Start-ups and scale-ups invest a disproportionate amount in R&D, developing key technologies such as artificial intelligence, bio-technology and photonics and rapidly translating these into innovative services and products. Their products and services often contribute to solving social challenges. We need these innovators desperately. That is why, as regional development companies, we are proud to have been able to allocate these bridging loans and to help so many innovative companies.”
The Corona Bridging Loan (COL) is an emergency loan for innovative entrepreneurs and SMEs without a bank credit relationship that have run into financial difficulties due to COVID-19. This arrangement was created via an intensive collaboration between the Dutch Ministry of Economic Affairs and Climate Policy (EZK), the joint Regional Development Companies (ROMs) and Techleap.nl along with the close involvement of Invest-NL. At the request of EZK, the ROMs allocate bridging loans between € 50,000 and € 2 million.
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