Cheap credit for freelancers

Cheap credit for freelancers

Hundreds of thousands of freelance professionals may be off the special-purpose compensation, amounting to 800 euros per month, but are eligible for the new stages (phases 4 and 5) of the cheap loans program, known as the Deposit To Be Returned, according to government announcements.

Any personal enterprises shutting down upon state order as of Saturday can participate in the state funding program regardless of their turnover decline and will receive a minimum of €2,000. Only 50% of that will have to be returned, i.e. a minimum of €1,000 in tranches with interest starting from 2022.

For other enterprises shuttering upon government order – i.e. not personal ones – there is a mathematical formula that applies, with a minimum of €2,000, and the requirement of a turnover drop of at least 20% compared to the same period in 2019. This will be paid out by the end of November.

Besides the companies that the state has ordered to shut until November 30 at the earliest, all other personal enterprises will also have the right to participate in the loans program, regardless of whether they employ other workers or have a till, as long as they can prove their turnover has declined by at least 20% year-on-year (and a minimum turnover of €300 last year).

Personal companies without any employees will receive a fixed amount of €1,000 during Phase 4 and up to a maximum amount of €1,000 in Phase 5, taking the mathematical formula into account.

In total, the sum the government will dole out for Phases 4 and 5 of the program comes to €1.7 billion, while it appears certain the program will continue into next year with a Phase 6.

Interested enterprises should apply for Phase 4 loans in the next few days on the online platform myBusinessSupport, which forms part of the Taxisnet network ( Applicants will then be informed by the Independent Authority for Public Revenue regarding the approval or rejection of their application, and can even ask for a review within five days.

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