More than 80 percent of entrepreneurs who received a wage subsidy last year (partially) must repay the money to the government. This concerns more than 50,000 companies and about 4.2 billion euros, according to a publication of three Finance Ministry officials in the ESP business magazine.
It is about the NOW support requested by the entrepreneurs for the period from March to October last year. They had to make an estimate of their turnover loss. On this basis, they received 80% of the requested aid in advance. This allowed them to continue to pay their employees.
Based on these estimates, the government provided a total of 12.2 billion euros for this period.
It now appears that more than eight out of ten entrepreneurs are extremely pessimistic. The final loss in turnover turned out to be less than they had anticipated. And so they have to pay a portion of the advanced wage support. It is likely that one in three entrepreneurs will have to return the full amount.
The analysis shows that there are significant differences between sectors. Practically none of the travel organizations that have received wage support have to repay. Most catering entrepreneurs weren’t too pessimistic in their estimates either. Veterinarians often have to repay the aid.