Working Capital Loan for Self-Employed in Utrecht
In Utrecht, the working capital loan for self-employed individuals provides support through the Bbz scheme (Decree on Welfare for Self-Employed 2004). Self-employed individuals facing liquidity issues can apply to the Municipality of Utrecht for an interest-free loan for working capital, such as inventory or daily expenses. This loan does not need to be repaid immediately, but only when the financial situation improves.
What is a working capital loan for self-employed in Utrecht?
This loan targets freelancers and entrepreneurs in Utrecht struggling with financial bottlenecks. Unlike commercial bank loans, it is a social provision under the welfare scheme. The funds are intended for essential expenditures, such as purchasing materials, paying suppliers, or salaries. The maximum amount is twice the monthly welfare benefit for a single person, depending on your circumstances.
It falls under the Bbz and builds on the general Bbz welfare for self-employed. Unlike a starter credit for new businesses, this provides ongoing working capital.
Legal basis
The Working Capital Loan for Self-Employed in Utrecht is laid down in the Decree on Welfare for Self-Employed 2004 (Bbz 2004). Relevant articles:
- Article 11 Bbz 2004: Provides working capital as an interest-free loan.
- Article 12 Bbz 2004: Requirements for approval, such as proof that the business would cease without the loan.
- Article 18 Bbz 2004: Governs repayment upon improved income or business cessation.
The Participation Act (Article 45 et seq.) links this to exceptional welfare benefits. The Municipality of Utrecht implements it according to local Bbz policy rules.
Conditions in Utrecht
For a Working Capital Loan for Self-Employed in Utrecht, these requirements apply:
- You meet the Bbz definition of self-employed: at least 1,225 hours per year (hours criterion).
- Your income is below the income threshold (100-150% of welfare norm).
- No option for bank financing (provide rejection letters).
- The business has prospects, as determined by a business scan.
- You reside in Utrecht and meet welfare conditions.
Utrecht example: A graphic designer in the Lombok neighborhood sees assignments drop due to economic pressure. After submitting an application with forecasts, the Municipality of Utrecht approves €4,500 for software and marketing.
Rights and obligations
Rights
- Interest-free loan up to €20,000 (per Municipality of Utrecht policy).
- No repayment required during low income periods.
- Objection to the Municipality of Utrecht; appeal to the District Court of Utrecht.
Obligations
- Monthly reporting on fund usage.
- Repayment upon business cessation, exceeding criteria, or asset sales.
- Bookkeeping available for inspection.
Comparison of financing options
| Type | Interest | Repayment | Conditions |
|---|---|---|---|
| Bbz Working Capital Loan Utrecht | Interest-free | Conditional | Income and hours criteria |
| Bank credit | 4-8% | Fixed terms | BKR and collateral |
| Qredits | 1-2% | Fixed | Training required |
| Microcredit BMKB | Variable | Fixed | Government guarantee |
Application to Municipality of Utrecht
- Contact the Work and Income department of the Municipality of Utrecht to schedule an appointment.
- Submit: Chamber of Commerce extract, invoices, forecast, bank rejections.
- Business advice including scan (external option available).
- Decision within 8 weeks.
- Additional welfare for any shortfalls.
Utrecht example: A baker in Oudwijk needs €6,000 for suppliers. After a positive scan, the loan helps bridge the busy period.
For advice: Contact Het Juridisch Loket Utrecht.
Frequently asked questions
Can I get a loan as a starter in Utrecht?
No for working capital, but yes for Bbz starter credit (Article 10). Check with the Municipality of Utrecht.
What if I have repayment issues?
Deferral possible in case of problems. Consult Het Juridisch Loket Utrecht.
Are there differences per municipality?
Yes, review the Bbz policy rules of the Municipality of Utrecht online.