Managing the corona crisis and Brexit
The Government of Flanders is giving businesses a boost and helping them cope with the consequences of Brexit.
Corona crisis
In the short term, it is crucial that companies are able to strengthen their liquidity and solvency as effectively as possible. Shareholders and banks play the principal role in this, but the government can act in a complementary way in the event of market failure.
The Government of Flanders has already taken a number of important decisions in this regard, which must now be put into practice. Via Flanders Holding Company, the Government of Flanders continues to help businesses by means of loans, capital participations and guarantees.
The Government of Flanders is providing:
- a package of EUR 500 million for very cheap subordinated loans to start-ups and scale-ups on the one hand and SMEs on the other
- EUR 3.4 billion in guarantee capacity to leverage maximum bank financing
- a Welfare Fund. This is an investment fund of EUR 500 million, half of which is funded by the Government of Flanders. The aim is to give a boost to promising companies that need capital in these pandemic times.
- an extension of the win-win loan and friend’s share.
Brexit
The Government of Flanders will support companies and a number of specific sectors to cope with the consequences of Brexit. To this end, it will extend the Flanders Investment & Trade export promotion plan and the initiatives of Flanders’ Agricultural Marketing Board (VLAM) in 2021 and 2022. It is also offering additional support measures to businesses that have been hard hit by Brexit.
In addition, the Government of Flanders is strengthening its efforts to attract investments, among other things by promoting Flanders as an innovative knowledge region to investors. To this end, it has deployed specialised consultants in fifteen top countries and is offering virtual site visits. Brexit will require many businesses to make significant changes to their business model. The Government of Flanders is offering targeted support via Flanders Innovation & Entrepreneurship (VLAIO).