Commission approves €100 million Flemish scheme to support companies affected by the coronavirus pandemic

The European Commission has approved a €100 million Flemish scheme to support companies affected by the coronavirus pandemic and the restrictions in place to limit the spread of the virus. The scheme was approved under the state aid Temporary Framework. The scheme, which goes under the name ‘Bridge loans in the Flemish region', will be open to micro, small and medium-sized enterprises active in all sectors, except the financial one. Under the scheme, the public support will take the form of loans. Eligible companies will receive up to two loans, at a subsidised interest rate of 1%. The total amount of the loans will range from €10,000 to €400,000 per beneficiary.

The Commission found that the Belgian scheme is in line with the conditions set out in the Temporary Framework. In particular, the aid (i) will not exceed €290,000 per company active in the primary production of agricultural products, €345,000 per company active in fishery and aquaculture and €2.3m per company in other sectors; and (ii) will be granted no later than 30 June 2022. The Commission therefore concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a member state, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.

On this basis, the Commission approved the measure under EU state aid rules. More information on the Temporary Framework and other actions taken by the Commission to address the economic impact of the coronavirus pandemic can be found here. The non-confidential version of the decision will be made available under the case number SA.101133 in the state aid register on the Commission's competition website once any confidentiality issues have been resolved.

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