Economy

Flemish government approves restart loan for cafes, restaurants and clothing stores

The first lockdown was announced almost a year ago, and many companies had to close their doors for a long time. Afterwards there were relaxations, but also strictures again. Some businesses, such as the catering industry, have now been closed again for months.

Many companies are struggling. More than 4 in 10 need additional capital to purchase supplies in the spring. For example, the fashion sector that, due to disappointing winter sales, has too few resources to purchase the new collection. When reopening, the catering industry will also have major costs to stock up on new stocks. Suppliers are less likely to delay payment because these are difficult months for them too.

“The fashion sector has had a very bad year and these people now have to place orders again for the next season, which is very difficult for them,” says Crevits in “The morning” on Radio 1. “The Flemish government decided yesterday. to put a restart loan on the market. That is a loan at a very advantageous rate to be able to meet the immediate cash need. As a retailer, you will pay part of your advance yourself, but the Flemish government also puts Bee.”

The restart loan applies to all things that restart, Crevits emphasizes, including the catering industry. “This is out of necessity. We have had many conversations in recent weeks, the situation is dire.”

The Flemish government has also extended the protection mechanism until the end of April. The long closure increases the risk of bankruptcy for many entrepreneurs, especially in the catering and event sector. The globalization mechanism for companies that experienced severe sales declines in the last three quarters in 2020 will also be finally approved.

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