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Step-by-step plan for loans with guarantees

BNG provides financing to foundations and associations under strict conditions. Under its articles of association, BNG can only provide financing if your foundation or association is considered to be in the public interest by the local government (usually a municipality or province). This is demonstrated, amongst other things, by the decision to provide a guarantee for financing. This guarantee serves as security for the bank. 

Conditions 

The main conditions are: 

  • Financing of at least 1 million euros
  • Repayment obligations for the new financing must logically correspond to the lifespan of the assets in which you are investing 

Required documentation 

Below is an overview of the required documentation. This is not a complete overview and no rights can be derived from it.  

  • Substantiated investment and financing plan
  • Multi-year budget with operating forecast, cash flow forecast and balance sheet projections, incorporating the (depreciation of) new investment and the (repayments of) new financing
  • Annual accounts and annual reports approved by the board or the members' meeting and/or accompanied by an auditor’s report
  • Recent annual accounts showing a balanced operating result
  • A copy of the articles of association stamped by a solicitor
  • A certified extract from the Dutch Chamber of Commerce (Kamer van Koophandel).
  • Clearly legible copies of the identity documents of all authorised directors, as stated in the Chamber of Commerce register
  • Signed request including a certified copy of the legal representative's signature, stating the name of the bank, account number, authorised person, loan purpose, amount, term and repayment method. Report from the Stichting Waarborgfonds Sport (Sports Guarantee Fund Foundation), if applicable
  • The guaranteeing local authority has taken a positive guarantee decision that meets the requirements set by BNG (see below). The local authority records the information and considerations on which it based its decision; BNG also receives this information. We aim to complete the procedure within one month of receiving the necessary documents.
  • A certified UBO extract, if applicable 

Guarantee decision 

BNG must be in possession of a correctly and fully signed, unconditional and irrevocable guarantee decision for the purpose of raising the loan. This decision is usually issued by the municipal executive of a municipality or the provincial executive of a province. BNG can then issue a quotation.  

It is legally important that the following passage is included verbatim in the decision (select the correct text from the guarantee decision): 
Garantiebesluit van het college van B&W van een gemeente (Guarantee decision by the municipal executive of a municipality)
The municipal executive of the municipality, having regard to Article 160(1)(d) of the Gemeentewet 

DECLARES: 

that it has taken note of the model deed of suretyship (stating the reference) of BNG Bank; and 

DECIDES: 

To irrevocably and unconditionally guarantee BNG Bank, under the conditions stated in this deed of suretyship, the proper fulfilment of all obligations arising from the [aforementioned] loan, in accordance with the model deed of suretyship with reference E2a01122010, up to a maximum amount of EUR XXXX, (plus any pro rata fines, costs and statutory and agreed interest attributable to this amount).
Guarantee decision by the Gedeputeerde Staten of a municipality
Staten of municipality [name municipality], having regard to Article 158(1)(d) of the Provinciewet  

DECLARES: 


Having taken note of the model deed of suretyship (stating the reference) of BNG Bank; and  


DECIDES: 

To irrevocably and unconditionally guarantee BNG Bank, under the terms and conditions set out in this deed of guarantee, the proper performance of all obligations under the loan [referred to therein], in accordance with the model deed of guarantee with reference E2a01122010, up to a maximum amount of EUR XXXX, (plus the pro rata share of penalties, costs and statutory and agreed interest attributable to this amount). 
 

If conditions other than those specified in this passage are included in the municipal/provincial executive decision, BNG will not accept the municipal/provincial executive decision, as it will no longer constitute an irrevocable and unconditional municipal/provincial guarantee.

BNG does not provide financing on the basis of a guarantee from Stichting Waarborgfonds Sport (SWS). It may be possible for the local authority to obtain a guarantee from SWS. If so, a loan may be applied for from the BNG Sustainability Fund on the basis of a guarantee from SWS. 

Procedure

Once all the necessary documentation has been received, the following process will commence:

  • BNG will initiate the statutory ‘Client Acceptance’ process based on the documents provided. This includes face-to-face identification of the directors via a video call.
  • BNG assesses your financing application.
  • You also submit the documentation to the local government. The relevant BNG account manager will contact you for a duty of care discussion about the risks.  
  • You will receive feedback on the decision regarding your financing application by telephone.
  • If the decision is positive, you can contact us by telephone to conclude the loan.
  • After acceptance of the telephone offer, BNG will send the deed of surety to the local authority for signature.
  • The loan agreement will be sent in duplicate for signature by the authorised directors.
  • The foundation or association will ensure that the fully signed agreement and deed of surety are received by BNG in good time, i.e. before the commencement date of the loan.
  • The amount of the loan will be transferred on the agreed deposit date, provided that the legally signed deed of surety and loan agreement are in the possession of BNG.

BNG will regularly review the loan with guarantee and conduct a Know Your Customer investigation.