New measures to support micro, small and medium sized businesses – Portuguese government injects another €1.5 billion into economy.

The Portuguese government is injecting another €1.5 billion into the economy to help support micro, small and medium sized businesses through the new State of Emergency. Half the money would be given in the form of grants, half as loans.

Target sectors are commerce, culture, lodging and touristic activities and restaurants. These new measures were presented under the Apoiar.pt programme. It includes grants for micro-businesses of up to €7,500, while small businesses will be eligible for up to €40,000.

Businesses eligible are all those that have registered a 25% fall in receipts during the first nine months of this year. These businesses however will all have to have their fiscal and contributive situation in order.

The credit aspect of the package is to be available for the export sector, and will give exporters the possibility of converting 20% of the credit into a non-repayable grant, as long as they maintain their current workforce.

There is also to be created a €50 million credit-line for businesses supporting the events sector.

The support for a progressive return regime (an updated form ‘simplified layoff’) is to continue until at least the first quarter of 2021. This support has already been taken up by at least 13,000 companies.

The government estimates that the new measures will be launched by the beginning of December.

Source : PORTUGAL RESIDENT