Banco Português de Fomento opens on Monday the applications for two lines of credit to support the economy of 1,100 million euros to support industry, tourism and events, sectors affected by the pandemic crisis.
In a statement, Banco Português de Fomento (BPF) states that the two lines of credit were created with the objective of “supporting employment and maintaining jobs in three sectors strongly affected by the pandemic – industry, tourism and the assembly of events ”.
The “support line for the covid-19 economy – exporting companies from industry and tourism” has a global allocation of 1,050 million euros.
The “support line for the covid-19 economy – event assembly”, on the other hand, has a value of 50 million euros and is aimed at companies whose turnover in 2019, at least 30%, comes from activity within the scope of event assembly, either in terms of infrastructure or audiovisual.
According to the BPF, both lines are available for micro, small and medium-sized companies (SMEs), including individual entrepreneurs, as well as for 'small mid cap' and 'mid cap', in any of the cases with activity in continental national territory, with a maximum period of operation of up to 6 years, including 12 months of capital shortage.
Each company may submit only one financing operation, with a limit of four thousand euros for each proven job, and the set of different operations contracted under the different lines of support for covid-19 cannot exceed twice the annual wage bill. of the company or 25% of the total annual turnover in 2019.
Part of the loan may be converted into a non-repayable grant (non-repayable financing), up to a maximum percentage of 20% of the financing amount, to be determined according to the maintenance of jobs, for at least 12 months after contracting , in addition to other cumulative requirements specific to each of the lines.
Both lines of credit are granted through the figure of portfolio guarantees issued directly to credit institutions, which decide on requests for financing taking into account their credit risk policy and compliance with the conditions of access to the line, making the process of making funds available to companies faster, by reducing the number of players in the decision-making and contracting circuit.
According to the statement, in order to be able to apply, "companies cannot have unregistered incidents with banks, BPF or entities participating in BPF, and must present the situation regularized with the Tax and Social Security Administration".
In the case of debts overdue after March 2020, access to finance is guaranteed, subject to subsequent adherence to a installment plan.
BPF also explains that companies that were in difficulty on December 31, 2019, cannot be considered, either before the worsening economic conditions due to covid-19.
Companies that are headquartered or dominated by entities that are headquartered in countries or regions with a clearly more favorable tax regime (‘offshore’) also cannot join.