Portugal: New business support measures

published on 5 October 2021 | reading time approx. 1 minute

    
Within the scope of Decree-Law 64/2021, of 28 July, the Portuguese Government has now regulated the creation of the Micro and Small Enterprise Treasury Support Line through the publication of Ministerial Order 192-A/2021, of 14 September.  In this context, the Ordinance therefore comes to regulate the Treasury Support Line for Micro and Small Enterprises, highlighting: 
  

Purpose:

The MEP Support Line is aimed at supporting the treasury of micro and small companies that are in a situation of business crisis. In fact, a business crisis situation shall be considered to be one in which there is a drop in turnover of 25 percent or more in the full calendar month immediately preceding the calendar month to which the initial request for support or the extension refers, compared with the same month in the previous year or in 2019, or compared with the monthly average over the six months preceding that period.

 
It should be noted that for those who have started their activity less than 24 months ago, the break in turnover referred to in the previous paragraph shall be measured against the average monthly turnover between the start of activity and the penultimate complete month preceding the calendar month to which the initial request for support or the extension refers.

Appropriation:

The initial allocation for financing operations under the EHL Grant Facility shall be EUR 100 million.

Beneficiaries:

Micro enterprise means an enterprise which employs fewer than 10 persons and whose annual turnover or annual balance sheet total does not exceed EUR 2 million; Small enterprise means an enterprise which employs fewer than 50 persons and whose annual turnover or annual balance sheet total does not exceed EUR 10 million.

Nature of Backup:

The financial support to be granted under the MEP facility shall take the form of a reimbursable grant.
The support referred to corresponds to the value of up to EUR 3,000 for each existing job in the company in the month immediately prior to the submission of the application, multiplied by three, up to a maximum amount of:

• EUR 25,000 in the case of micro-enterprises;
• EUR 75,000 for small enterprises. 

Support Reimbursement:

The financial support shall be repaid within a maximum period of four years from the date of conclusion of the respective contract, including a grace period of up to 12 months, and a fixed interest rate of 150 basis points shall apply. In turn, the repayment of the financial support granted occurs in equal, postponed capital instalments, with a monthly frequency. Finally, it should be borne in mind that the beneficiary may repay the loan early, in part or in full, at any time, at no additional cost.