Support under the Temporary Bridging Scheme for Independent Entrepreneurs (Tozo) for self-employed persons in financial need will also continue. The supplementary income support provided to help with living costs is being extended until the end of August 2020. Under the Tozo scheme a person’s income is supplemented up to the level of the minimum social income and this does not have to be paid back.

Conditions tightened to include partner test
Unlike Tozo 1.0, Tozo 2.0 will include a partner test. If the partner’s income results in the family income exceeding the minimum social income, under the new scheme a self-employed person will therefore no longer receive any income support. However, there will still be no means test: the viability of the business will not be considered and the so-called ‘kostendelersnorm’ (cost standard divisor) will still not be applied. The cost standard divisor means that if several adults are living together, the benefit payment is lower, as it is assumed that the costs will be shared. This will therefore not apply under the new Tozo scheme either.

Working capital loan
It will also still be possible to obtain support in the form of a working capital loan of up to € 10,157 at a reduced interest rate.

Please note:
Entrepreneurs can submit applications for Tozo 2.0 to the local authority in their municipality of residence from 1 June to 31 August