Working Capital Loan for Self-Employed in Rotterdam
A working capital loan for self-employed in Rotterdam falls under the Bbz scheme (Decree on Welfare Benefits for Self-Employed Persons 2004). It offers self-employed professionals and entrepreneurs an interest-free loan for working capital, ideal for Rotterdam residents facing liquidity issues, such as maintaining inventory or paying bills in the vibrant port city. The Municipality of Rotterdam provides this loan, with repayment deferral until your finances improve.
What does a working capital loan for self-employed in Rotterdam entail?
This working capital loan for self-employed targets self-employed professionals in Rotterdam who are in need. Unlike commercial bank loans, it is a form of social assistance. The funds cover day-to-day expenses, such as purchasing materials, paying suppliers, or salaries – essential in sectors like logistics and the creative industry. The maximum amount is twice the welfare benefit for a single person, based on your personal situation.
It forms part of the Bbz and builds on the general Bbz welfare for self-employed. Unlike starter credit for startup investments, this focuses on ongoing working capital.
Legal basis in Rotterdam
The working capital loan for self-employed is laid down in the Decree on Welfare Benefits for Self-Employed Persons 2004 (Bbz 2004). Relevant articles:
- Article 11 Bbz 2004: Provides working capital as an interest-free loan.
- Article 12 Bbz 2004: Requirements, such as proof that the business would fail without the loan.
- Article 18 Bbz 2004: Repayment rules upon improved income or business closure.
The Participation Act (Article 45 et seq.) incorporates the Bbz. In Rotterdam, the Municipality of Rotterdam applies this through local Bbz policy rules, tailored to the city’s economy.
Conditions for a loan in Rotterdam
For approval by the Municipality of Rotterdam, these requirements apply:
- You meet the Bbz definition of self-employed: 1,225 hours per year (hours criterion).
- Your income is below the income threshold (100-150% of the welfare norm).
- No option for bank financing (provide rejection letters).
- Positive business scan for viability.
- You reside in Rotterdam and meet welfare conditions.
Practical example from Rotterdam: A graphic designer from Rotterdam-South sees assignments drop due to economic pressure. With €5,000 needed for software and marketing, the Municipality of Rotterdam approves €4,000 after reviewing invoices and forecasts.
Rights and obligations in Rotterdam
Your rights
- Interest-free loan up to €20,000 (per Municipality of Rotterdam policy).
- No repayment required during low income periods.
- Objection with the municipality, appeal to Rotterdam District Court.
Your obligations
- Report monthly on fund usage.
- Repay upon: business closure, income increase, or asset sale.
- Provide access to bookkeeping for Municipality of Rotterdam inspection.
Comparison of financing options
| Type | Interest | Repayment | Conditions |
|---|---|---|---|
| Bbz Working Capital Loan Rotterdam | Interest-free | Conditional | Income and hours criteria |
| Bank credit | 4-8% | Fixed terms | BKR check, collateral |
| Qredits | 1-2% | Fixed | Training required |
| BMKB microcredit | Variable | Fixed | Government guarantee |
Application with Municipality of Rotterdam
- Schedule an appointment with Municipality of Rotterdam, Work and Income department.
- Submit: Chamber of Commerce extract, financial statements, forecast, bank rejections.
- Business advice including external scan.
- Decision within 8 weeks.
- Additional welfare if needed. Contact Rotterdam Legal Aid Office for free advice.
Practical example from Rotterdam: A baker in Rotterdam-West needs €6,000 for suppliers due to peak demand. After a successful scan, the loan helps him through the busy period.
Frequently asked questions for Rotterdam
Can starters in Rotterdam get a working capital loan?
No, starters qualify for Bbz starter credit (Article 10). Working capital is for established self-employed.
What if repayment is not possible in Rotterdam?
Deferral possible in case of issues. Consult Rotterdam Legal Aid Office. Fraud leads to offset against welfare.
Does the scheme differ in Rotterdam?
Yes, check the Municipality of Rotterdam website or call Rotterdam Legal Aid Office for current Bbz policy rules.