Now also for startup entrepreneurs
Kralendijk, June 4, 2021 – Qredits receives another loan of 70 million euros from the Ministry of Economic Affairs and Climate. With this loan, the non-profit lender will be able to provide corona bridging loans to entrepreneurs who started in the first half of 2020. The loan is an addition to the previous measure that Qredits, together with the ministry and extra support from the Public Entity Bonaire, implemented as part of the government’s aid package for entrepreneurs. Qredits, as a social lender, will implement the new scheme in the Netherlands as well as the BES islands.
The vast majority of the loan is intended to offer perspective to startup entrepreneurs. Startups that started their business in the first two quarters of 2020 had very limited access to existing schemes. With this new loan, this group is now also supported. The corona-bridging loan for Startups is exclusively for entrepreneurs who started between January and June 2020. During this period, their business must also be registered with the Chamber of Commerce and Industry of Bonaire.
These startups can turn to Qredits for a corona-bridging loan of up to $40,000. The loan term is up to 72 months, with the entrepreneur not required to make any repayments for the first 12 months. The interest rate for the entire term of the loan is only 1.75%, and the entrepreneur can repay the loan without penalty. "I have confidence that the economy of Bonaire will recover quickly. In these challenging times, it is crucial to support businesses and maintain the availability of employment."
"The corona-bridging loan for startups from Qredits will certainly contribute to a swift recovery of our economy," said Commissioner Hennyson Thielman.
Of the 70 million euros, 30 million euros is available for existing entrepreneurs who have also been negatively affected by the corona crisis. This concerns the corona bridging loan introduced in May 2020 for entrepreneurs who were already operational before March 2019. The Public Entity Bonaire also provided additional financial support of $120,000 at that time. Qredits will continue to meet the needs of this group of entrepreneurs. The conditions for this bridging loan at Qredits are also very favorable.
It concerns a loan for a microcredit of up to a maximum of $25,000 for existing entrepreneurs. The term of the loan is a maximum of 48 months, with the entrepreneur not having to make any repayments during the first 6 months. This repayment-free period can, if necessary, be extended to 12 months. The entrepreneur pays 2% interest on the loan amount during the first year of the term, after which it rises to 6.75%. It is important to note that the entrepreneur can repay the loan at any time after the first year without any penalties.
With support from the Ministry of Economic Affairs and Climate, Qredits introduced an additional aid measure for its credit clients in the early days of the coronavirus crisis in March 2020. Any entrepreneur with a loan from Qredits could request a deferral of repayment for a period of six to twelve months. During this period, the client paid only 2% interest.
This allowed entrepreneurs to temporarily suspend repayments, pay substantially less interest, and receive significant support in bridging this difficult period. The Ministry of Economic Affairs and Climate made six million euros available for this initiative, allowing 6,000 entrepreneurs – in the Netherlands and the Caribbean – to be assisted. More than 55% of Qredits' clients on Bonaire gratefully took advantage of this arrangement.
