The new line of support for micro and small businesses due to the Covid-19 pandemic, with an allocation of 1.000 million euros is available as of today, according to a statement.
A note, SPGM - Sociedade de Investimento, manager of the Covid-19 Economy Support Line - Micro and Small Enterprises, indicated that this line “has an allocation of 1.000 million euros, of which 700 million euros are intended for micro-enterprises and EUR 300 million to small businesses ”to support societies affected by the pandemic.
“Companies can obtain financing of up to 50.000 euros, in the case of micro companies, or up to 250.000 euros in the case of small companies, for a maximum period of operation of up to six years including 18 months of grace period, and a guarantee of up to 90% of the outstanding capital, ”said SPGM.
According to the statement, “in order to be eligible, companies will have to show an abrupt and sharp drop in at least 40% of their turnover, and they will not have been able to benefit from previous mutual guarantee lines of credit created to support the normalization of business activity in the face of the pandemic outbreak of covid-19 ”.
SPGM also warns that “neither can they be considered as companies in difficulty, on December 31, 2019, nor have their headquarters in countries or regions with a more favorable tax regime (offshore ')”.
The entity also reported on a review and introduction of improvements, in view of the latest measures, "in order to guarantee the faster availability of the loan amount to companies".
Thus, the new line includes "the formalization of the contracting of approved operations fully guaranteed by the bank and the definition of a single use of the total amount of financing, within a maximum period of 15 days", reads in the same note.
“A new methodology was also implemented in terms of line distribution rules, taking into account this change in the use of line usage quotas by banking institutions, as opposed to the traditional 'first come first served' distribution model, in force in the previous lines, so that support reaches the largest number of companies and as quickly as possible ”, explained SPGM.
According to the organization, "the utilization quotas determined take into account the volumes of gross credit to companies granted in accordance with the respective Annual Reports and Accounts reported on 31 December 2019".