Importing Dutch entrepreneurs
Do you import goods from a developing country or an emerging market? Want to grow your business but can’t get funding from your bank? The Dutch Good Growth Fund (DGGF) supports imports by Dutch entrepreneurs through guarantees and loans up to a maximum of €15 million.
What are the options?
The DGGF helps Dutch importers pre-finance their local supplier(s) in DGGF countries. You can obtain funding for the purchase of the goods from your local supplier. Under specific conditions, you can also obtain funding to directly support the growth of your local supplier in the DGGF country, for example for local farmers who have to purchase additional land or machinery in order to continue to meet your requirements.
The DGGF offers the following finance options:
- Guarantees to EU banks and local banks in DGGF countries: Does your bank or a local bank regard the risk associated with providing finance as too high? The DGGF can provide a guarantee which limits potential losses on a loan. A bank is more likely to provide you with a loan if the DGGF assumes part (60–80%) of the risk.
- Loan to Dutch entrepreneurs: If a guarantee is not possible, the DGGF itself can provide you with a loan directly.
What conditions apply?
To be eligible for DGGF finance, you must meet a number of conditions. The DGGF funding must be a minimum of €500,000 and a maximum of €15 million and the term is a maximum of 15 years. The interest or guarantee fee, including the upfront fee of 1% for the DGGF loan or guarantee, is in line with market rates.
The following is a list of the other conditions that you must meet in order to be eligible for the DGGF Import part.
- Your company is based in the Netherlands and conducts significant activities there. In other words, your Dutch operations generate sufficient revenues and profits through activities in the Netherlands.
- You import goods from one of the DGGF countries. View the DGGF country list (link to www.dggf.nl/landenlijst)
- You have a solid (international) track record and management information system.
- You continue to run your core business in conjunction with a reputable supplier from a DGGF country. You maintain an active trading relationship with this supplier.
- You comply with the ICSR framework for International Corporate Social Responsibility. The policy of the Netherlands Enterprise Agency is based on the principles established by the OECD Guidelines and the IFC Performance Standards. Learn more about the ICSR policy (link to DGGF) Your supplier in the DGGF country must also comply with the ICSR framework. Only suppliers with ICSR certification, or which expect to obtain such certification within an acceptable period of time, are eligible for this type of finance.
- You have a robust business plan. You will be able to repay the loan. The DGGF only funds projects which are commercially viable.
- Your investment is development relevant: you make a contribution to local growth in employment, sustainable transfer of knowledge and skills, technology and innovation and/or the improvement of local production.
How do I submit an application?
Submit your plan (without obligation) to the Netherlands Enterprise Agency by completing the Quickscan Investing form. This is the first step in the application process.
A DGGF adviser from the Netherlands Enterprise Agency will then call you as soon as possible to discuss your completed Quickscan with you. You will be given the opportunity to provide further details of your project plan. Our adviser will decide whether your plan is eligible for funding from DGGF. Where appropriate, other options will be investigated.