New support measures by the Jambon government: EUR 3,000 for entrepreneurs with a severe loss of income

“We will dig deep into our pockets.” Flemish Minister-President Jan Jambon announces additional economic support measures. They include a one-off compensation premium of EUR 3,000 for entrepreneurs who suffer more than a 60 percent loss of income. At the same time, Jambon called for pragmatism: “The Flemish Government will never be able to compensate for all the losses.”

Prepared for massive efforts

“The damage keeps rising, day after day. Corona is also a severe attack on our economic fabric.” Minister-President Jan Jambon and the Flemish Government are launching new support measures for entrepreneurs and companies suffering income losses due to the corona crisis. “The Flemish Government is prepared to make huge efforts to weather this tsunami,” says Jan Jambon.

The Flemish Government is taking the following four measures:

• One-off compensation of EUR 3,000. Companies that have seen 60 percent of their turnover fall between mid-March and the end of April will receive a one-off premium of EUR 3,000. Examples include companies in the events sector, as well as physiotherapists, dentists, psychologists and speech therapists who are only allowed to carry out urgent treatments. They will then sign a statement of honour, which can be verified afterwards. Self-employed persons in a second occupation can also apply for a (reduced) compensation premium. A condition is that they either pay Social security Social security is currently managed at the Federal level in Belgium. The most important pillars of Belgian social security are: sickness and invalidity insurance (NIDHI), pensions, unemployment insurance and child allowances. In addition, occupational illness, occupational accidents and annual holidays are dealt with at this level. Some Flemish parties have been campaigning for years for (large parts of) social security to be transferred to the Regions and Communities. social security contributions related to their main jobs or are not employed more than 80 percent in their main job.
• Expansion of guarantee capacity. For large companies, the government will provide more guarantees if those companies have difficulty paying off their loans: Gigarant’s guarantee capacity (guarantees above EUR 1.5 million) will be expanded from EUR 1.5 billion to EUR 3 billion. This allows large companies to receive a special COVID-19 guarantee.
• Three-year subordinated loans. For SMEs (with a focus on start-ups and scale-ups), there will be three-year subordinated loans with a reduced interest rate, for which EUR 250 million will be provided.
• EUR 200 million for the “subsidised” sector. An emergency fund will be set up for subsidised sectors, such as culture, youth, sports and media.

These measures are in addition to the first package of support measures that the Flemish Government took earlier.

Compassion with those affected by the coronavirus

Minister-President Jan Jambon also reflects on the unprecedented challenge that Flanders is facing. “We are all painfully affected by what this savage epidemic is causing. The daily images of the sick, family members and the caregivers are harrowing. We deeply sympathise with the women, men and children who are fighting for their lives in the hospital, and with the families of the victims of the coronavirus. No one could have seen this coming or predicted it.”

Sober and thoughtful

Still, there’s no need to throw your arms up in despair now, Jan Jambon says. “The situation forces us to be realistic and to take thoughtful action. The sober reality is that the Flemish Government will never be able to compensate for all the losses. We will however do as much as we can, and for that, we’ll dig deep into our pockets.”

Everyone together for the recovery

The Minister-President is calling on everyone to work together after corona to make the economic reconstruction of Flanders a reality. “Our Flemish economic ship is getting dangerously off course. But if we can get every available hand on deck, we’ll be back in safe waters one day. Let’s be inspired by the fantastic work that many Flemish people in the healthcare sector are doing these days.”

Inspiration from John F. Kennedy

Jan Jambon gets his own inspiration from some world leaders. “It’s not my style to measure myself against those world leaders, but their famous words give me hope and strength. Sometimes I dream that we Flemish people are motivated by the memorable call to appeal of John F. Kennedy, about sixty years ago now: “Ask not what your country can do for you - ask what you can do for your country.”