In times of uncertainty, companies are constantly bombarded by so much information and it becomes difficult to filter what is relevant and impactful for the daily operations and for the short and medium-term strategies of start-ups.
Under this context, Bynd VC looked for the main measures being taken by public authorities in order to reduce the impact of the current pandemic on SME’s.
(in constant update)
Financing / Credit Lines
Credit lines available with an allocation of EUR 200 million for “Working Capital — Linha de Crédito Capitalizar ‐ ‘Covid ‐19 ‐ Fundo de Maneio’” and “Treasury Plafond — Linha de Crédito Capitalizar ‐ ‘Covid ‐19 ‐ Fundo de Maneio’ “, working on a logic of first come first serve:
1. Main Eligibility Aspects:
● Positive Shareholders Equity in the last approved balance sheet.
- Note: Companies with negative equity in the last approved balance sheet can access the credit lines if they rectify the situation in the interim balance sheet.
● No debt owed to FINOVA nor having pending incidents with the bank.
● No debt owed to the Tax Authority and Social Security.
● Business volume drop of at least 20% when compared to the 30 days immediately preceding.
● Other updated eligibility criteria to be confirmed when a law is published.
2. Main conditions:
● Grace period up to 12 months (applicable only for the working capital).
● Interest = Euribor + Spread (~2%-3,3%).
● Mutual guarantee of up to 80%.
3. Banks offering this line:
● Abanca Corporacion Bancaria, S.A. ‐ Sucursal em Portugal
● Banco Bilbao Vizcaya Argentina, S.A. ‐ Sucursal em Portugal
● Banco BPI, S.A.
● Banco Comercial Português, S.A.
● Banco Português de Gestão, S.A.
● Banco Santander Totta, S.A.
● Caixa Central de Crédito Agrícola Mútuo, CRL
● Caixa de Crédito de Agrícola Mútuo de Leiria, CRL
● Caixa Económica Montepio Geral
● Caixa Geral de Depósitos, S.A.
● Novo Banco, S.A.
● Banco BIC Português, S.A.
● Novo Banco dos Açores, S.A.
● Bankinter, S.A. ‐ Sucursal em Portugal
● Caixa de Crédito Agrícola Mútuo da Chamusca, CRL
● Caixa de Crédito Agrícola Mútuo de Mafra, CRL
4. More details available at:
● Working Capital — link (not updated with new criteria)
● Treasury Plafond — link (not updated with new criteria)
● Current available information link
In addition to these two credit lines covering all economic sectors, an additional four credit lines representing 3 billion euros of additional financing with a grace period of up to 12 months and 4 year amortization period were made available for the following sectors:
Restaurants and alike: 600M€ with 270M€ for micro and SME’s.
Tourism — travel agencies, animation and events’ organization and similars: 200M€ with 75M€ for micro and SME’s.
Tourism — Developments and accommodations: 900M€ with 300M€ for micro and SME’s
Industry, mainly textile sector: 1.3B€ with 400M€ for micro and SME’s.
- Main Eligibility Aspects:
● Microenterprises, SMEs, small mid cap and mid cap with:
- Positive Shareholders Equity in the last approved balance sheet.
- Negative equity and settlement in the interim balance sheet approved until the date of the transaction.
- Main Conditions:
- Maximum per company: 1.5 million euros.
- Guarantee: Up to 100% of the outstanding capital.
- Counter-guarantees: 100%.
Term of operations: 4 years.
1. Eligibility — Sharp and unexpected drop in Sales of at least 40% in the last 30 days compared with the average of the last 2 months or with the homologous period or, the average of the available period for companies having started their activity in less than 12 months. Also, companies that project at least a 40% decrease in their production due to canceled orders. Also, companies that were forced by law to close partially or totally their activity.
2. Conditions — Employees receive 66% of current gross salary, 70% of which paid by Social Security and 30% by the company. Valid for 1-month renewable for up to 6 months.
3. More details in this link
4. Applicable law in this link
HR costs support measures
1. Remote work can be imposed by the company or the employee. Remuneration doesn’t suffer changes.
2. Employees that are imposed to be at home in isolation and cannot do remote work (because its function doesn’t allow it) — 100% of gross salary paid by Social Security.
3. Infected employees are considered in a sick leave | Receive 55% of salary until 30 days, 60% until 90 days, 70% until a year, 75% from there, paid by Social Security.
4. Employees that need to homecare their children and the other parent is working — 66% of gross salary (50% paid by Social Security and 50% by the Company). Min and max values apply.
5. Employees with infected children — 65% of gross salary paid by Social Security (in March), expected to climb to 100% of gross salary paid by Social Security from April.
6. Access all the mandatory templates (Company, Social Security) in this link.
7. More details of each measure in this link.
8. Applicable law in this link.
Regarding the fulfillment of tax obligations by companies, the time limits for such transactions have been extended, without any surcharges or penalties:
1. The “Pagamento Especial Por Conta” to be made in March can be made until June 30, 2020.
2. The tax obligations relating to the delivery of the periodic declaration of income of IRC (Model 22 declaration) of the 2019 tax period, may be fulfilled until July 31, 2020.
3. The “Primeiro pagamento por conta” and “primeiro pagamento adicional por conta” to be made in July, can be made until August 31, 2020.
4. Situations of infection or prophylactic-declared isolation determined by health authority must be regarded as sufficient conditions for the application of the figure of just impediment in the fulfillment of tax declaratory obligations, in relation to certified taxpayers or accountants.
5. Regarding these 4 initial measures all the details in this link.
New measures released in 18–03–2020 (to be updated when law is published):
IVA, IRS and IRC contributions:
1. Responsibilities of the 2Q 2020 (April to Jun) can be paid in installments — 3 installments without interest / 6 installments with the last 3 installments having interests (“juros de mora”)
2. Eligibility — Companies with annual revenues below 10 million euros in 2018. Any company that started its activity in 2019.
3. Eligibility — Any other company can apply to this measure if they have a sales decrease of at least 20% in the last 3 months when compared with the homologous period last year.
4. More details in this link.
5. The applicable law is in this link.
Social Security contribution (“TSU”):
1. The TSU payment date on the 20th of March has been suspended. Thus, companies can postpone last month’s TSU payment without any type of penalty.
2. Companies will need to pay only 1/3 of the required contributions in the months of March, April and May. The remaining contributions will be due only in the 3Q2020 and can be paid in installments — 3 installments without interest / 6 installments with the last 3 installments having interests (“juros de mora”). More detailed and clear conditions shall be available soon.
3. Eligibility — Companies with less than 50 employees.
4. Eligibility — Companies with less than 250 employees can apply to this measure if they have a sales decrease of at least 20% in the last 3 months when compared with the homologous period last year.
5. Currently available details link.
6. The applicable law is in this link.
1. Three months suspension of all existing or future fiscal executions/processes.
1. The General Meetings of commercial companies, associations or cooperatives that must be held by legal or statutory imposition, can be held until June 30, 2020.
2. PT 2020:
(i) Incentives’ payment within 30 days
(ii) Extension of the credit reimbursement period granted under the QREN or PT 2020.
(iii) Eligibility for expenses incurred with canceled international events.
All the detailed and updated measures impacting SME’s can be analyzed in this link.
IAPMEI has a specific email for COVID related questions.
Simultaneously, you can contact them directly through the following contacts:
Aveiro: (+351) 234 302 450
Braga: (+351) 253 206 601
Bragança: (+351) 273 300 000
Coimbra: (+351) 239 853 940
Covilhã: (+351) 275 330 550
Évora: (+351) 266 739 700
Faro: (+351) 289 895 800
Guarda: (+351) 271 220 840
Leiria: (+351) 244 817 900
Lisbon: (+351) 213 836 237
Port: (+351) 226 152 000
Viseu: (+351) 232 483 440
Other interesting links
The Open for Business Hub lists technology companies that are helping small businesses by enabling remote work throughout this period. https://openforbusiness.org/.
You can also find further information about the solutions being implemented to help remote work, resulting from a partnership with some of the main technological companies and telco operators, provided by the Government in this link (in Portuguese).
Initiative & movement #tech4Covid19 — https://tech4covid19.org/
Please always confirm your eligibility for any measure with your accountant and legal advisor (as always, the law can have different meanings).