Due to the coronavirus, the government has announced a new regulation: The Temporary bridging measure for self-employed professionals (Tozo).

Special (temporary) arrangement due to coronavirus

The Temporary bridging measure for self-employed professionals (Tozo) offers support for self-employed professionals who are experiencing financial difficulties due to the corona crisis. It consists of an income support and/or loan for business capital.

Income support

Self-employed professionals can claim an allowance for 3 months which doesn’t need to be repaid. The allowance compensates for your income, which is at the level of basic welfare.

Since its extension, this scheme contains a partner test. This means that only households with an income below the social minimum are entitled to this scheme. The scheme applies retroactively. Tozo 1 expired at the end of May 2020, Tozo 2 at the end of September. The Tozo has been extended until July 1, 2021. Tozo 3 will run from 1 October 2020 to 1 April 2021 and Tozo 4 will run from April 1 to July 1, 2021. Information about Tozo 4 will be announced in early 2021.

Terms and conditions

In order to be eligible for the Tozo arrangement, you have to meet the following requirements:

  • You expect to earn less than the social minimum in the coming months (€ 1.050 per month for single households, € 1.500 for a partnership household) due to coronavirus;

  • you are an established self-employed professional, ages between 18 and retirement age;

  • you live and reside in the Netherlands legitimately;

  • you meet the legal requirements for being a business owner, for instance you are registered in the Commercial Register (Handelsregister);

  • you started your company before 17 March 2020 and you meet the hours criterion (a minimum of 1,225 hours per year are put into your company or professional activities)

A loan for business capital

Self-employed professionals that are at financial risk due to the corona crisis can apply for a loan to a maximum amount of € 10,157 with an interest rate of 2%. The maximum duration of the loan is 3 years. Your first term will not start until January 2021. Always be aware that borrowing money also costs money.

How to apply for Tozo?

Do you meet the requirements and do you want to apply for the Tozo? You can apply at the municipality where you live. Check your municipality’s website for more information. It is not necessary to apply immediately as the arrangement will be in force retroactively. Your situation will be checked subsequent to your appeal, so do not misuse the arrangement. The government may reclaim the allowance and fine you.

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