January 19, 2021

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Flanders extends commercial lease loan to six months

Flanders extends commercial lease loan to six months

The Flemish government is expanding the commercial rental loan and making it more attractive. The Flemish Minister for Economic Affairs, Hilde Crevits, has extended her term of office to six months.

As a result of the corona measures, many retailers and catering operators had to close their locations while the rental payment continued. Entrepreneurs can take out a commercial rental loan for this rent from the Flemish government, which had previously undertaken to loan the tenant a maximum of two months ‘rent, provided the landlord waives one or two months’ rent. It’s been four months now. In concrete terms, this means that the period that the tenant can bridge is extended from four to six months.

Maximum amounts

The maximum amounts will also be increased. Instead of a maximum of 35,000 euros per property, a tenant can now borrow a maximum of 60,000 euros per property. An entrepreneur who rents several buildings can borrow a maximum of 150,000 euros. The interest is two percent and the repayment may only begin after six months. Entrepreneurs who already have a commercial lease loan can extend it to the maximum renewed terms. An entrepreneur who already has a subordinated loan cannot rely on the commercial rental loan. The adjusted commercial lease will also be available for companies incorporated after March 12, 2020 and going into effect on January 4, 2021.

574 applications

In the meantime, 574 applications for a commercial rental loan have been submitted. Of these, 368 have been approved, 56 have been rejected and another 150 are pending. Anyone who does not immediately reach an agreement with their landlord can also apply for mediation. For example, 116 applications were submitted. 18 of these led to an agreement, 52 have not yet been concluded, 10 were not dealt with because the landlord was not ready, 10 were not allowed and 3 ultimately did not lead to an agreement. The others have yet to be started.