Working Capital Loan for Self-Employed in Westland
In Westland, self-employed individuals can apply for a working capital loan through the Bbz scheme (Besluit bijstandverlening zelfstandigen 2004). This is an interest-free loan from the Municipality of Westland for working capital, ideal for local entrepreneurs such as greenhouse horticulturists facing liquidity issues for inventory, greenhouse heating, or supplier payments. Repayment is only required once finances improve.
What does a working capital loan for self-employed in Westland entail?
This loan targets freelancers and self-employed individuals in financial distress in the Westland region. Unlike commercial bank loans, the Bbz provides a social solution for day-to-day expenses, such as purchasing seeds, substrates, or payroll. The maximum amount is twice the social assistance rate for a single person, depending on your circumstances.
It falls under the Bbz and builds on the general Bbz assistance. Unlike starter credit for investments, this supports ongoing business operations in the horticultural and agricultural sectors.
Legal basis
The working capital loan for self-employed is enshrined in the Besluit bijstandverlening zelfstandigen 2004 (Bbz 2004). Relevant articles:
- Article 11 Bbz 2004: Provides working capital as an interest-free loan.
- Article 12 Bbz 2004: Eligibility requirements, such as proof that the business would cease without the loan.
- Article 18 Bbz 2004: Repayment rules in case of exceeding the hours criterion or business cessation.
The Participation Act (Article 45 et seq.) integrates the Bbz as special assistance. The Municipality of Westland implements this through local Bbz policy rules.
Eligibility criteria in Westland
The following criteria apply for a working capital loan in Westland:
- You meet the Bbz self-employed profile: at least 1,225 working hours per year.
- Your income remains below the income threshold (100-150% of the assistance norm).
- No option for bank financing (provide rejection letters).
- Positive business scan for viability.
- You reside in Westland and meet social assistance conditions.
Practical example: As a greenhouse horticulturist in Westland, you need €5,000 for fertilizer and gas due to a seasonal dip. After submitting invoices and forecasts, the Municipality of Westland approves €4,000.
Rights and obligations
Your rights
- Interest-free loan up to €20,000 (per Westland policy).
- No repayment required for low incomes.
- Objection with Municipality of Westland, appeal to District Court Westland.
Your obligations
- Monthly reporting on usage.
- Repayment upon cessation, income increase, or asset sale.
- Provide accounting records for inspection.
Comparison with other options
| Type | Interest | Repayment | Conditions |
|---|---|---|---|
| Bbz Working Capital Loan Westland | Interest-free | Conditional | Income test, hours |
| Bank credit | 4-8% | Fixed | BKR, collateral |
| Qredits | 1-2% | Fixed | Starter training |
| BMKB microcredit | Variable | Fixed | Government guarantee |
Application process at Municipality of Westland
- Schedule appointment with Municipality of Westland (Work and Income).
- Submit: Chamber of Commerce extract, financial statements, forecast, bank rejections.
- Business advisory via scan.
- Decision within 8 weeks.
- In case of shortfall: supplementary assistance.
Practical example: A flower grower in Westland borrows €6,000 for supplier advance payments. After the scan, they weather the busy period.
Frequently asked questions
Can starters in Westland get a working capital loan?
No, starters qualify for Bbz starter credit (Article 10). Working capital is for established businesses.
What if I have repayment issues?
The Municipality of Westland may grant deferral. In case of fraud, offset against assistance. Contact Legal Aid Office Westland.
Does it vary by municipality?
Yes, check Bbz policy rules on the Municipality of Westland website or call Legal Aid Office Westland.