Short Reads

Dutch 'Growth Facility' approved by the European Commission

Dutch 'Growth Facility' approved by the European Commission

Dutch 'Growth Facility' approved by the European Commission

10.07.2018

The European Commission has concluded that the "Growth Facility", a Dutch scheme to facilitate investments by providing guarantees on 50% of new subordinated loans and equity, does not involve state aid within the meaning of EU rules.

The Dutch Growth Facility is a governmental guarantee scheme meant for small and medium-sized companies wanting to attract venture capital quickly, in order to finance activities such as acquisition of a new entity, a buy-out or an international expansion. Financing such activities often proofs to be difficult, especially for small and medium-sized companies. In order to support these companies in such activities, the Dutch State created the Growth Facility, which offers the party financing the activity a 50% guarantee of new subordinated loans and equity to these companies for up to 12 years. Loans guaranteed under the Dutch Growth Facility can range from €2.5 million to €25 million.

The Dutch State compensates 50% of any loss, which lowers the risks of the financing party significantly. In order to apply for the Growth Facility as a financing party, you should apply for participation in the programme with the Growth Facility team. As a company, you cannot apply for the Growth Facility, but you can turn to one of the financing parties participating in the Growth Facility.

The European Commission faced the question whether or not the funds provided by the Dutch State under the Growth Facility qualify as state aid. The Commission concluded that the Dutch guarantee scheme does not constitute state aid to the financing parties. Relevant factors supporting this conclusion were that the fees paid in exchange for the guarantees give the Dutch State an appropriate remuneration level, which ensures that the Growth Facility is self-financing.

In March 2018, the Commission already approved the 'Extended Growth Facility', which is a similar measure available for fast growing medium and large companies. Loans under the Extended Growth Facility can range from €1.5 million to €150 million and can last for up to 8 years.

Team

Related news

05.09.2018 NL law
Consultation on additional remuneration restrictions within the financial sector

Short Reads - A team from Stibbe has participated in the public consultation launched by the Minister of Finance on additional remuneration restrictions within the financial sector. In their response (in Dutch), the Stibbe team pointed out that there are several legal objections to the proposed measures. Furthermore, the team has raised questions regarding the necessity and legal justification for introducing these additional measures.

Read more

11.07.2018 NL law
Update initiatiefwetsvoorstel introductie instemmingsrecht en aanscherping vaste beloning bankiers

Short Reads - Op 25 april 2018 heeft de Afdeling advisering van de Raad van State (hierna Raad van State) een kritisch advies uitgebracht over het initiatief-wetsvoorstel om de wet op het financieel toezicht (Wft) te wijzigen. Op 5 juli 2018 is dit advies tezamen met de reactie van de initiatiefnemers van het wetsvoorstel op het advies van de Raad van State gepubliceerd, evenals het aangepaste wetsvoorstel dat is aangeboden aan de Tweede Kamer.

Read more

23.07.2018 NL law
Evaluatie Wbfo en start consultatie over mogelijke wijzigingen/wettelijke maatregelen voor vaste beloning

Short Reads - Op 17 juli 2018 heeft de minister van Financiën de twee rapporten over de evaluatie van de Wet beloningsbeleid financiële ondernemingen (Wbfo) aangeboden aan de Tweede Kamer. Tevens is een maatschappelijke consultatie naar drie wettelijke maatregelen met betrekking tot de vaste beloningen geopend.

Read more

16.07.2018 NL law
ISDA publishes consultation on benchmark fallbacks

Short Reads - ISDA publishes consultation on benchmark fallbacks. As part of an initiative to amend its standard derivatives documentation to facilitate the replacement of existing interbank offered rates (IBORs) by risk free rates (RFRs), the International Swaps and Derivatives Association (ISDA) has published a consultation paper on certain adjustments required to such RFRs.

Read more

Our website uses cookies: third party analytics cookies to best adapt our website to your needs & cookies to enable social media functionalities. For more information on the use of cookies, please check our Privacy and Cookie Policy. Please note that you can change your cookie opt-ins at any time via your browser settings.

Privacy – en cookieverklaring