On Monday 26 March, the European Commission said that the Extended Growth Facility (or GO facility), a guarantee regime set in place by the Dutch authorities to improve access to financing for medium-sized large businesses with strong growth potential, does not constitute state aid.
Through this measure, which has been capped at €400 million a year up to 2023, the Dutch authorities will guarantee 50% of new loans taken out by the businesses in question for up to eight years. The total of loans granted here may vary between €1.5 million and €150 million. The Netherlands considers that banks will be encouraged to lend on a larger scale than they currently do.
Banks offering loans to businesses will have to pay a guarantee premium to the Dutch state.
Following its examination, the Commission observed that the guarantees provided by the state are accompanied by an adequate level of repayment, thereby allowing the facility to self-fund, particularly in terms of covering administrative costs, and the remuneration of virtual capital.
The institution therefore concluded that the measure did not constitute state aid for either the banks or the beneficiary companies. (Original version in French by Lucas Tripoteau)