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17 February 2021

Covid-19 Economy Support Line, Exporting Industry and Tourism Companies

WHAT IS THE PURPOSE?
With the objective of supporting employment and maintaining jobs in two sectors strongly affected by the pandemic: industry and tourism, Banco Português do Fomento opened on January 18, 2021 the applications for the new Covid-19 Economy Support Lines.

WHAT IS THE TOTAL AMOUNT OF THE LINE?
The line of support for exporting companies in industry and tourism has a global allocation of 1.050 million euros.

WHICH ARE THE RECIPIENTS?
Micro, Small and Medium Enterprises (SME), including sole proprietorships (ENI), as well as Small Mid Cap and Mid Cap, in any of the cases with activity in continental Portugal, that develop activity in the lists of CAE detailed in the technical sheet and cumulatively meet the following requirements:
  • Were not considered as companies in difficulty on December 31, 2019;
  • Do not have unsettled incidents with the Bank, BPF or participated entities, on the date of the contract issuance;
  • Have, on the date of the financing, the situation regularized with the AT and SS, or in the case of debts due after March 2020, access to financing is guaranteed, under the condition of subsequent adhesion to the installment plan;
  • Are not considered entities with headquarters or effective management in countries, territories or regions with a clearly more favorable tax regime (offshore), or companies controlled by entities, including fiduciary structures of any nature, with headquarters or effective management in countries, territories or regions with a clearly more favorable tax regime
  • Comply with a 2019 Export Intensity Ratio of at least 20%;
  • Comply with the obligation to register in the Central Register of the Actual Beneficiary
WHICH OPERATIONS ARE ELIGIBLE?
Operations destined exclusively to finance treasury needs.

WHAT IS THE MAXIMUM AMOUNT OF FINANCING?
  • An amount of 4,000 euros per job evidenced by the last salary sheet submitted to the Social Security before the contracting of the operation with the bank, as long as this amount does not exceed
  • twice the beneficiary's annual wage bill in 2019 or the last year available. In the case of companies created on or after January 1, 2019, the maximum amount of the loan cannot exceed the duly documented estimate of the annual wage bill for the first two years of operation; or
  • 25% of the beneficiary's total turnover in 2019.

WHAT ARE THE MAXIMUM PERIODS OF AMORTIZATION, GRACE PERIOD AND UTILIZATION?
Global Financing Term: up to 6 years, after the contracting of the operation.
Grace Period: up to 12 months grace period, after the contracting of the operation.
Utilization Term: A single utilization of the total amount, up to 30 calendar days from the contracting date; the Bank cannot assign a credit value date in the client's account prior to the date on which the funds are actually made available.
Part of the loan may be converted into a non-refundable subsidy, up to a limit of 20% of the financing value, the conversion percentage being calculated as follows

Conversion of 20% of the loan into a non-refundable subsidy with the maintenance of all jobs, compared to those verified in the last pay slip submitted to Social Security detailing all workers prior to the date of contracting the operation with the bank, for at least 12 months from the contracting date;
In the case of non-maintenance of all jobs, under the terms of the previous point, the maximum percentage of conversion of the loan into a non-refundable subsidy (20%) will be reduced in the proportion corresponding to the reduction in jobs, there being no place for conversion if the non-maintenance of jobs is greater than 30% in relation to those verified on the last pay slip submitted to the Social Security with details of all the workers before the date of contracting the operation with the bank;

This article is for information purposes only, and does not dispense with reading the official document from Banco Português de Fomento, so for more information you should contact your credit institution.
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In the event of a dispute, the consumer may use an Alternative Dispute Resolution Body:

CICAP – Tribunal Arbitral de Consumo
Rua Damião de Góis, 31, Loja 6, 4050-225, Porto
+351 22 550 83 49 / +351 22 502 97 91
cicap@cicap.pt

More information on Portal do Consumidor www.consumidor.pt